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. Moocher

    For profit education is a failure, now you not only pay $100K for a worthless degree, Congress is making money off the loan you took to get your wothless education.

    Tie the rate for student loans to the rate the feds charge the banks.

    July 10, 2013 01:33 pm at 1:33 pm |
  2. Mr Johnson

    The youngsters need to get their head out of the sand, I mean their iPhones and get involved.

    July 10, 2013 01:34 pm at 1:34 pm |
  3. Mike

    Gem.. So I lose 20% of my income and help pay for a lower interest rate as well. That is what comes for those not having to deal with paycuts. Training education very important. So I think they should lower my car loans.. oh wait I signed a contract agreed to a loan.. I must pay.. becuase I honor my debt. Kids now.. no i shouldn't have to pay, let me claim bankrupcty. where does it end?

    July 10, 2013 01:35 pm at 1:35 pm |
  4. rs

    America Suckered Again

    The first step towards controlling rampant education costs and debilitating debt on our young people.
    ___________________________
    The main reason that tuition costs are up so much (that in turn drive the amount of loans student must take on) is that across the country, GOP controlled states have cut their state's funding to higher education. Take my state- in 1980, the stae funded 88% of the total operating costs of the state universities. Today- 22%. That's why tuitions in AZ. went from $400 a semester in '80 to about $8,000- despite it being enshrined in the State Constitution that higher education would be as nearly free as possible.
    The GOP caused this problem.

    July 10, 2013 01:35 pm at 1:35 pm |
  5. John/kc

    If they had to have 60 votes for this to pass in the Senate, that means that the republicans must have filibustered again. The republicans cry and blame the democrats, but we all know who the party of NO is, and it isn't the democrats.

    July 10, 2013 01:35 pm at 1:35 pm |
  6. chachabrown

    I'd like to see the vote roll call. I bet I can guess since CNN didn't say.

    July 10, 2013 01:38 pm at 1:38 pm |
  7. dg

    Went to medical school and had to take out a huge loan and now as a Dr. I am stuck with a huge bill and high insurance (so yes I make a lot but pay a lot).....was it worth it now to think of it....NO. So if you saying its bad to take out a huge loan or its my fault...you right.
    What about the schools that are charging the price that most of us cannot afford? No blame there? or when other folks from other nations, come here for school and their government pays their way and our government helps with other expenses?? Trust me in the medical field I seen a lot of that......they go back home debt free thanks to their gov and ours. I would rather get the issue at hand under control....school should be free to all that are citizens.

    July 10, 2013 01:38 pm at 1:38 pm |
  8. Pogojo

    The Senate stopped this, majority Democrats, quit with the Republican stuff

    July 10, 2013 01:38 pm at 1:38 pm |
  9. mike

    haha stinking republicans, this will cost you all of the young vote in 2014 you pigs deserve it...

    July 10, 2013 01:39 pm at 1:39 pm |
  10. Ryan in Texas

    These are unsecured loans.
    Taxpayers are subsiding them – the real rate would be much higher.
    You can't repo a student loan. It's no different than stuff you buy with a Credit Card. So the rate should be similar. Even 7% is a bargain for an unsecured loan.

    July 10, 2013 01:39 pm at 1:39 pm |
  11. Txpharm

    If Democrats had made this a priority they could have passed it. They're too busy legislating from the white house to prevent implosion of Obamacare, which by the way, also screws over Millennials by forcing them to subsidize Boomers because of the big meaty community rating bone Obama tossed to AARP. They get to bankroll Boomers 300% return on Medicare taxes. Their massive unemployment is ignored. Obama can bend these poor kids over all night long and still keep their votes in the bag using his mastery of celebrity culture. Tragic.

    July 10, 2013 01:39 pm at 1:39 pm |
  12. OldJoe

    Education is BIG BUSINESS.
    Every time there's more money available, be it grants or loans, the tuition (and administrative costs) goes up.

    July 10, 2013 01:40 pm at 1:40 pm |
  13. Ray E. (Georgia)

    Aw, Humm,
    I suspect the rates will be ajusted before it's all done. BUT if it isn't, consider it a part of your Education! And for Christs Sakes don't be surprised if no one has any symphony for you. When you get in school you have to hit the books, or whatever is in fashion these days. And when you get in the workplace you will be expected to perform, or leave. Grow up!

    July 10, 2013 01:40 pm at 1:40 pm |
  14. CosmicC

    @Smarter than ewe – You may be smarter than a sheep, but you don't seem to understand the higher education funding issues. The difference in borrowing costs, even for an in-state student will prevent many porr and lower middle class students from being able to afford school at all.

    July 10, 2013 01:40 pm at 1:40 pm |
  15. SomeoneinPA

    Love how they vote this down. Why? Because it doesn't personally EFFECT any of them!!!! They all have more than enough money to pay for their own children's educations 10 times over. As usual they don't care about the middle class or anyone else - well unless you're wealthy like they are. I'd LOVE to be able to pay for my children's education. I can't. I can barely get by on what we have. My daughter has been in college for two years. She commutes from home (30 miles one way) each day because she cannot afford to live on campus. My son begins college in the fall - same thing - will be commuting to the same college as his sister. We cannot afford for them to live on campus OR go to a college any farther from home. I didn't have my college loans paid off until I was nearly 30 years old. No, it shouldn't be "easy" but it also shouldn't be this hard either.

    July 10, 2013 01:42 pm at 1:42 pm |
  16. Julie Ware

    It is really sad when you try to better yourself and you are left with a huge loan and making little to no money. Way to look out for the future students and adults trying to do better USA

    July 10, 2013 01:44 pm at 1:44 pm |
  17. kubflower

    The government should be making it more affordable for people to go to college and further their education and not make it less affordable. We have people who WANT to go to school but can't go because they can't afford. Then because they can't afford to go to college, they can't get jobs.

    July 10, 2013 01:44 pm at 1:44 pm |
  18. downwithnazis

    Thank you, Harry Reid, for your principled stand to let the minority rule.

    July 10, 2013 01:44 pm at 1:44 pm |
  19. Name

    So Obama gave 7 billion of our tax paying dollars to Mandelas cause and they do dumb stuff like that daily without asking us the people we got two choices.. keep allowing it to happen by giving all our money to a corrupt gov or we can all unite and demand change.. without or money they got nothing wake up before its to late

    July 10, 2013 01:44 pm at 1:44 pm |
  20. John

    Maybe it is time that people who went to college went to earn a degree, not to party. Maybe this will deter people to consider other cheaper, secondary education options. Most people should be going to a trade school anyways.

    July 10, 2013 01:45 pm at 1:45 pm |
  21. Minnie Mouse

    Do you want a good economy or not, on top of good educated people for the future of our country?? If college is not affordable, then who's going to be buying or doing anything on low income wage jobs, which in turn leads to longer welfare lines.

    Why would you not want everyone to get a good education and make it affordable for everyone! There are other ways to collect interest and it should not be from young people who are struggling to pay for a high price college as it is already just to live a decent life in his or her own future. Higher interest rates just escalates the burden of the already high costs.

    If your really want to be fair about the interest rates, then don't hand out pell grants because everyone needs to feel the pain. The government has no control over what anyone's household income is and neither does the tax payers.

    July 10, 2013 01:46 pm at 1:46 pm |
  22. Bweave

    Why are we focused on the rates? Do any of you even know the difference a few percentage points make in the monthly payments over 20 years? The cost of college should be the focus of the debate not a few percentage points. Also, no matter what the rates are, it doesn't keep the poor and middle class out of college...I was lower middle class and I went when rates were capped at 6.8%.

    July 10, 2013 01:48 pm at 1:48 pm |
  23. GHYkl

    It is simple; you pay back your loan at the rate you signed on for or you serve 4 years in the military at half pay.

    July 10, 2013 01:48 pm at 1:48 pm |
  24. Harris

    This is a good way to turn young people from education or increase bankruptcy rate in United States.

    July 10, 2013 01:49 pm at 1:49 pm |
  25. cj

    Capitalism is a good thing...when it is properly constrained. Out sourcing and the every shrinking middle class should be proof enough but neither party is worried since they are the 1%.

    July 10, 2013 01:50 pm at 1:50 pm |
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