As if student loan rates aren’t high enough, a failed Senate vote may mean mo’ money out of our pockets.
It is very unlikely that the Senate will be able to prevent student loans from increasing on July 1st.
On Thursday, two groups of senators — one a bipartisan group that includes Sens. Joe Manchin (D-WV) and Tom Coburn (R-OK), the other of just Democrats — planned to release proposals to prevent rates from doubling from 3.4 percent to 6.8 percent while Congress is taking a vacation for the July 4 holiday.
A group of Democrats — Sens. Jack Reed (D-RI), Kay Hagan (D-NC),Tom Harkin (D-IA), Al Franken (D-MN), Elizabeth Warren (D-MA), and Debbie Stabenow (D-MI) — planned a press conference for Thursday afternoon to announce a plan for another one-year extension of current rates.
Asked why it’s taken until June 27 to come up with a proposal to fix a problem that crystallizes on July 1, Sen. Angus King (I-ME) quipped, “It’s like Dr. Johnson’s comment about the dog that could walk on its hind legs. The remarkable thing is not that it’s done well, it’s that it’s done at all.”
Most Congressmen believe that the rate on student loans should not increase and should stay lower than 6.8 percent, while a few Republicans would like to disagree on this matter.
Any loans approved after July 1, but before legislation passes, would have the lower interest rates.
Looks like we’re still going to be eating noodles – even out of college.
Source: MSNBC
