Senator Jack Reed (D. RI) has a new ally in the Senate to help him tackle student loan interest rate hikes:
http://www.cbs6albany.com/...
Senator Charles Schumer has said he is backing legislation to prevent a doubling of a student loan interest rate that takes effect July 1.
On Wednesday, he said the rate on the federally-subsidized Stafford loans will jump from 3.4 to 6.8 percent, unless Congress takes action.
Schumer sayid he will help Lead Sponsor Senator Jack Reed, a Rhode Island Democrat, bring the Student Loan Affordability Act of 2013 to the floor before the deadline. - CBS 6 Albany, 5/15/13
Here's what the Student Loan Affordability Act of 2013 calls for:
http://www.recordonline.com/...
The legislation would freeze the lower rate for two more years.
Paying the higher interest rate would cost the average student an extra $3,798, Schumer estimated.
"That's not chump change," said Schumer, especially for students, who "have lots more debts." - Times Herald-Record, 5/16/13
Reed, Schumer and Senate Democrats are pushing to keep student loan interest rates from doubling before July 1st:
http://campusprogress.org/...
The loans, which are reserved for undergraduate students, are set to double from their 3.4 percent rate to 6.8 percent on July 1. Members of the Senate, including Majority Leader Harry Reid (D-NV), unveiled the proposal today, saying the short-term solution is crucial for protecting borrowers while giving Congress time to formulate long-term solutions to our student debt crisis.
Joining Reid in introducing the legislation, which would be paid for by closing tax loopholes, were Senators Tom Harkin (D-IA) and Jack Reed (D-RI).
“This two-year extension is the most viable way forward to protect students and fully pay for it,” said Harkin, who chairs the Senate Health, Education, Labor, and Pensions Committee. "Unlike some proposals that would extract billions more from students by charging them higher interest rates or make them vulnerable to sky-high interest rates in the future, this legislation will help ensure that college remains within reach for students who rely on federal loans to pay for their education. This bill will allow us to engage in a careful and thoughtful way on student loans in the context of the reauthorization of the Higher Education Act."
Higher education advocates are already coming out in support of the proposed legislation.
"It’s a smart, short-term solution that keeps subsidized Stafford loans at the current fixed rate of 3.4 percent for two years," said Pauline Abernathy, vice president of The Institute of College Access & Success. "It pays for itself by closing unnecessary tax loopholes, two of which President Obama included in his most recent budget proposal."
The costs of extending the interest rates would be offset by closing three key loopholes: limiting tax-deferred retirement accounts as a complicated estate planning tool, closing corporate offshore tax loopholes, and raising revenue by treating oil from tar sands like other petroleum products.
"I believe we need to continue to work in a bipartisan way to maintain, not increase, student loan rates, and preserve our historical commitment to protecting students from outrageous interest rates," Harkin said. - Campus Progress, 5/15/13
If you have any questions or would like to know more about the Student Loan Affordability Act of 2013, please contact Senator Reed's office for more details:
(202) 224-4642