Senators hope for student loan deal soon as rate doubles
July 10th, 2013
06:00 PM ET
9 months ago

Senators hope for student loan deal soon as rate doubles

Washington (CNN) - A Democratic measure to temporarily reverse the doubling of interest rates on millions of government-backed student loans fell short in the U.S. Senate on Wednesday, but there was hope a bipartisan deal would be struck soon to remedy the situation.

"We're trying to find some common ground," said Sen. Richard Durbin of Illinois, the No. 2 Democratic leader who spearheaded fresh talks on the dispute. "We don't have an agreement and I can't say when or if we'll come together."

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Filed under: Education
soundoff (264 Responses)
  1. Doh

    So let me get this straight, they jump immediately to help/subsidize/protect/bailout Big Oil, Big Money, Big Auto, and Big Pharma, but couldn't care less about the students of America. Shouldn't those big corporations run by "adults" be even more responsible than students in the first place?

    July 10, 2013 04:23 pm at 4:23 pm |
  2. NickAnast

    Lower the interest rate to 0.75%. If the banks can pay that rate to the government, then so can college students.

    July 10, 2013 04:25 pm at 4:25 pm |
  3. Anonymous

    Too many students take out loan funds for non-school related expenses. Students should be prohibited from borrowing more than what's necessary to obtain a degree. Need help with tuition, fees, books – sure, no problem. If all loan funds are going to pay school expenses, that's one thing, however, if students are receiving refunds and spending it on cars, vacations, parties, fun, etc. therein lies the problem. Furthermore, students shouldn't be going to college to "get a piece of paper" there should be a purpose, skill set learned, to enter a specific work field.

    July 10, 2013 04:29 pm at 4:29 pm |
  4. Steve Schmidtleton

    If someone can vote for a president, they should be able to take responsibility for any debt they incur. Perhaps raising the rates wouldn't be necessary if the government stopped loaning money to students (and corporations) who can't pay it back – even if it were 1%. I've been paying my loans for 30 years, in hindsight, I either would've (a) not gone to college at all, or (b) majored in a specific field. "Anonymous" above has it right.

    July 10, 2013 04:34 pm at 4:34 pm |
  5. truth

    Teachers join unions and their salaries increase year after year
    Those costs get passed off onto students and education costs rise
    Democrats get elected with teachers union dues
    Democrats then use Federal tax money to lower the cost of education
    price continue rising
    Republicans say enough is enough
    Democrats blame republicans for increasing costs....

    HAHAHAHA You people are blind

    July 10, 2013 04:39 pm at 4:39 pm |
  6. Mopery

    Universities are nothing more than investments in the future of the NFL and the NBA. Almost none of your tuition goes to your professors, especially those in the science or engineering fields. Meanwhile billions are spent protecting violent criminals posing as coaches and players. Coach gets a DUI? Why, not when the local Judge hears about it. Got to protect our most valuable societal assets...like drunk driving football coaches. Player assaults a fellow student at a party, injuring him so badly that he requires facial reconstructive surgery? No problem, sure the local newspaper will report about it for a week or so, but soon enough it drifts into obscurity and ignorance, meanwhile the assaulted student is kicked out of the university for fighting with a basketball hero.

    Save your money. Go to a library.

    July 10, 2013 04:40 pm at 4:40 pm |
  7. truth

    @NickAnast – Then put your diploma up for collateral. If you can't pay off your loan after college, you forfeit your degree.

    July 10, 2013 04:41 pm at 4:41 pm |
  8. Mark

    "Their is no reason for anyone not working."

    So, for every non-working adult their is a matching job that will allow them to survive without any government assistance? Maybe you have a business plan since you seem to be one of the few that has enough information to make a statement like this.

    July 10, 2013 04:42 pm at 4:42 pm |
  9. Faisal

    It makes no sense that car loans and house loans are so cheap and yet I'm paying 8 percent on my PLUS loan and my son little over 6% on loans in his name. Together we pay a large chunk of our paychecks and the loan balance isn't going anywhere. We're two years in on a 25 year plan.

    I'm not running away from the loan but someone has got to do something about these interest rates.

    July 10, 2013 04:44 pm at 4:44 pm |
  10. A College Student

    This is to "Dave" as a college student I have worked 2 jobs while going to school. I also lead a student organization, participate in undergraduate student research and get almost straight A's. It doesn't matter how hard I work, I am still thousands in debt. I have worked 2 jobs since I was 16, do you realize how expensive college is? Not to mention I am graduating with the realization I probably will not get a job in my field unless I intern for countless unpaid hours. It's an old stereotype that college students are lazy, don't work, drink and get high. It doesn't matter how hard you work, college is unattainably expensive.

    July 10, 2013 04:46 pm at 4:46 pm |
  11. truth

    @Faisal – It does make since.
    A bank makes a loan on a house, they get ALL the money you put down, ALL the money you paid for x amount of years + the house back!
    A bank makes a loan on a car, they get ALL the money you put down, ALL of the money you paid for x amount of years = the car back
    A banks makes a loan for the student and defaults, does the bank get the kids degree? NO! If that is what your proposing, I'm all for it. Take all their degrees!

    July 10, 2013 04:48 pm at 4:48 pm |
  12. Reneguard7

    Maybe if "Dave" went to college then maybe he'd learn which version of the word "there" to use–and not to use a double-negative in a sentence. And I have no idea what the Heck "dose" is supposed to be! LOL

    July 10, 2013 04:49 pm at 4:49 pm |
  13. Steve Schmidtleton

    @Faisal.....did you know they were 8% and 6% when you took them out?

    July 10, 2013 04:50 pm at 4:50 pm |
  14. Lardoggy

    For all you young people who have student loans and voted for Obama get what you voted for.I feel for you but next time think before you vote.

    July 10, 2013 04:50 pm at 4:50 pm |
  15. Ted

    So...Section 6. Medicaid, and all the other welfare items REMAIN and our kids have another setback when they try to better themselves and get a career and job!
    When did we become so SOCIALISTIC!?

    July 10, 2013 04:51 pm at 4:51 pm |
  16. OMG

    Tom
    This is bad. Studying is already very expensive thus being an obstacle to get all willing and capable American citizens the opportunity for higher education. In European countries, like Germany, university/college education is free. Looks like you folks have to import more graduates from India and China to fill up the ranks. But then please stop complaining about foreigners taking away jobs in the USA.

    I work as an engineer and we are already doing that in our team. We hire people from India because the US isn't producing enough good engineers. People should note that these aren't the inexperienced youngsters you might find in a call center. Engineers from India are good engineers (often with their Masters degree from US universities). Since India was a British colony, they are also native English speakers. Yes, they have an accent but so do people from North Carolina (or wherever).

    We are already feeling the pain of losing our manufacturing jobs due to outsourcing. Unless we get our act together with education, all our professional jobs will soon suffer the same fate. Making it harder to get an education is a huge mistake.

    July 10, 2013 04:53 pm at 4:53 pm |
  17. truth hurts but reality bites

    Faisal
    It makes no sense that car loans and house loans are so cheap and yet I'm paying 8 percent on my PLUS loan and my son little over 6% on loans in his name. Together we pay a large chunk of our paychecks and the loan balance isn't going anywhere. We're two years in on a 25 year plan.
    I'm not running away from the loan but someone has got to do something about these interest rates.
    --

    Ever hear of secured verus unsecured? You are clueless when it comes to financial matters. You have too much debt. You mean to STOP borrowing money if you ever hope to get ahead. And please educate yourself in finance and money management.

    July 10, 2013 04:54 pm at 4:54 pm |
  18. Thomas

    @NickAnast
    Lower the interest rate to 0.75%. If the banks can pay that rate to the government, then so can college students.

    How could Phenix University make money at that rate ?

    July 10, 2013 04:54 pm at 4:54 pm |
  19. NoGuesswork

    I say,"par for the course". The people are powerless when they negotiate their authority to make decisions to third parties. This is just another fiasco of two completely purposeless parties trying to get the other in trouble for stupid legislation and the whole time they are both in it up to their wallets. Sad day for all you younger folks that thought the political promises of a bunch of liars actually meant something, especially if you thought they would give you any special consideration since your the future of America and all. The joke goes on.

    July 10, 2013 04:54 pm at 4:54 pm |
  20. Dave

    My understanding of the diff in the plans:

    Dems want to freeze rates really low on only Govt Guaranteed student loans

    Repubs want to set rates to market which is really low already, and will probably stay low for a while, on ALL student loans, including the ones not guaranteed by the govt.

    So in essence the Republicans are looking out for ALL young people, the Dems are selfishly refusing to help many students. Just like HARP and HARP 2, only people loans from Govt agencies are qualified for relief, those of us that borrowed from private banks get the shaft from the Dems.

    July 10, 2013 04:57 pm at 4:57 pm |
  21. sammy750

    This is an interesting vote, since Republicans keep saying in public they want to roll back the loan rate, yet they defeat it in the Senate today. This is the way Republicans have done for the past few years. They speak about passing bills, yet they defeat them at voting time. Republicans are not serious about helping the college students or anyone. Republicans continue the mission of bringing down this nation and the people with its voting record.

    July 10, 2013 05:08 pm at 5:08 pm |
  22. America Suckered Again

    Universities will be glad to charge whatever level of debt students can dig themselves into. It is obscene. The problem is not that interest rates are too high. It's that universities charge too much. This is a scam that the government can no longer justify supporting. It encourages pricing education beyond the reasonable reach of students.

    July 10, 2013 05:09 pm at 5:09 pm |
  23. Carolynn

    Our public schools have dumbed down their students about as much as possible and now as college tuitions continue to sky rocket, those students that have worked hard and learned anyway will be scalped by high interest for student loans. In this country, the have and the have not's are more clearly defined every day . Education should be the one thing our government is willing to invest in for our future as a nation. Too many C students in congress.

    July 10, 2013 05:16 pm at 5:16 pm |
  24. Mark

    I, along with other students, will remember this during election year! Forget the stupid self serving party cronies. Vote for a candidate that actually cares about our country and citizens and doesn't give a rat's ass about the political parties.

    July 10, 2013 05:17 pm at 5:17 pm |
  25. to painful to say

    Some of the comments in here are downright scary. It appears we have become a nation of complete ignoramuses. Supposedly educated people that do not understand basic finances and how borrowing money and ow it can either help you or destroy you. Our education system is churning out financial illerates that expect others to bail them out. Very sad.

    July 10, 2013 05:18 pm at 5:18 pm |
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