Student loan rates to double if Congress doesn't act
May 8th, 2012
10:24 AM ET
3 years ago

Student loan rates to double if Congress doesn't act

Washington (CNNMoney) - With federal student loan interest rates set to double July 1, the Senate will consider on Tuesday a bill to extend low 3.4% rates for another year.

In Washington, many lawmakers in both parties agree they'd like to extend the current 3.4% rates for another year. What they don't agree on is how to offset the $6 billion it would cost to do so - a substantial hurdle.

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Filed under: Congress
soundoff (14 Responses)
  1. The Real Tom Paine

    Hey, what's to worry? If they can't finish college, they can always go to work at Staples, or any number of min-wage jobs the righties say are so good for you ( just not for them). You can work for 80-100 hours a week at job you hate, just so the Right can feel good about funding their tax cuts for the Romneys. After all, don't they look like victims?

    May 8, 2012 10:30 am at 10:30 am |
  2. Larry L

    Republicans will block this because wealthy folks don't use student loans. They'll do some political stunt to tie oil subsidies or some other gifts to the fat-cats to student loans. They will never do anything to simply help the working class.

    May 8, 2012 10:30 am at 10:30 am |
  3. Namejkane fl live from teapublican moon base no taxes, no regulation no health care, free gas.

    The republican bafoons in congress will try to attach some extremest rider to the bill in an attempt to kill it and then blame the DEMS like they usually do , and them blame the DEMS when it doesn't pass. Time to sweep republican trash out of government altogether in Nov.

    May 8, 2012 10:31 am at 10:31 am |
  4. Andrew

    As usual, the republicans are against anything related to getting education.... Fits right in with the other end of the republican party.... Uneducated social conservatives that have no idea what voting republican actually means for them other than their outdated social beliefs.

    May 8, 2012 10:31 am at 10:31 am |
  5. Rudy NYC

    Why extend the rates for only one year? Why not extend the rates for 6 or 8 years? Republicans wrote the legislation. Why did they script it for only one year and not more? Because it creates confusion and uncertainty. The more uncertain things are, the less people will take risks, or spend money. That slows the economy, which is good if you are a Republican with a Democrat in the White House.

    May 8, 2012 10:35 am at 10:35 am |
  6. Democrat Class Warfare - Destroying the economy, destroying the country

    ANOTHER $6 BILLION in tax payer money to BUY votes for Obama???!!! What total BS!! Let the people that took out the loans pay for it themselves. The taxpayers wallet is not a bottomless well to steal from to give to others. And what about next year and the following year? We'll be paying for this AGAIN and AGAIN. ENOUGH!!!! If you whiners don't want to pay the interest, DON'T TAKE THE LOAN!!!

    May 8, 2012 10:35 am at 10:35 am |
  7. Claudia, Houston, Tx

    This Republican Congress is too busy "doubling down" funding the defense budget planning for wars instead of our youths college education. I think the average age of our enlisted is about 24 yrs old.

    May 8, 2012 10:53 am at 10:53 am |
  8. vote the Tea Party OUT in 2012

    am I missing something here because this is a LOAN people not a grant. A LOAN has to be paid back one way or another and I fell to see why the GOP has such a big problem with this. I am still paying back a student loan myself and Uncle Sam WILL get his money one way or the other. Yes keep the interest rates low because the more educated people become the less likely they will become right wing Republicans. Then again maybe THAT is the reason the GOP is against this.

    May 8, 2012 11:09 am at 11:09 am |
  9. rs

    Once again, the GOP paints a very clear picture of who they are, and who they support. They want to make Obama choose between doubling interest rates on unemployed students with government-backed loans, or taking healthcare supporting funds away from the poor- while they protect a tax loophole for the better off who would not be hurt at all by paying a slightly greater amount of taxes instead. The GOP has no soul.

    May 8, 2012 11:10 am at 11:10 am |
  10. A mn

    Congress has submitted a plan with a way to pay for it now its up to the senate and the president to pass it stop blaming the gop and get the job done

    May 8, 2012 11:15 am at 11:15 am |
  11. george of the jungle

    unfortunatly the repos can't come up with a plan that does not end up screwing the middle and lower class. They want to pay for everything by taking away social programs that help people in need, This will slow down the economy even more which is exactly what they want. Forward Obama 2012

    May 8, 2012 11:26 am at 11:26 am |
  12. vote_them_out

    Student loans rates will double because the Democrats passed the law to do it.

    May 8, 2012 11:37 am at 11:37 am |
  13. B.

    Republicans are going to also take this one hostage as they have on every other piece of legislation.

    May 8, 2012 11:39 am at 11:39 am |
  14. The REAL Truth...

    Once again the Grand Obstructionist Party will do all in its power to ensure Obama is a one term president. To hell with the country, education, healthcare, women' issues and any other issue that can be made to make Obama look bad.
    They will hold this hostage – as they have with every other piece of legislation since 2010 – then try to blame Obama for their inaction. Typical....GOBP.

    Obama needs to be re-elected, if only to see our home-grown Taliban sent packing. Good riddance..

    May 8, 2012 11:53 am at 11:53 am |