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. Robin Jones

    The root problem here is cost. College and university costs have grown at 2 to 3 times the inflation rate for decades with no corresponding improvement in the education actually delivered. Cheap student loans serve only to fuel the bloat.

    July 10, 2013 03:14 pm at 3:14 pm |
  2. Jim

    Not really sure why the government should further subsidize student loans. Let free market take it's course and tuition at both public and private schools will come down. Cutting the interest rates is extremely shortsighted. At the end of the day, interest is not the problem, it's the principal.

    July 10, 2013 03:14 pm at 3:14 pm |
  3. cc423

    Bailing the big banks out with free money? No problem. Helping students with their student debt? Forget about it. This is your government at work America.

    July 10, 2013 03:19 pm at 3:19 pm |
  4. DNADEB

    Robin Jones What metrics have you applied that have allowed you to come to this conclusion that cheap student loans serve only to fuel the bloat? Your data source?

    July 10, 2013 03:19 pm at 3:19 pm |
  5. Shane

    Almost no interest for loans to all the big banks to bail them out, almost no interest on loans to automotive industry, and increased interest rates for EDUCATION which is the backbone of good business. Why isn't the backbone getting the same breaks as those who break they system over and over.

    July 10, 2013 03:20 pm at 3:20 pm |
  6. jim

    F you Senate, F you.

    July 10, 2013 03:21 pm at 3:21 pm |
  7. Pete

    It's funny how republicans keep putting nails in their political coffins now with student loan rates..Wasn't it some time ago when these same arrogent republicans voted almost unanimously for the sequester with Pres.Obamas signing it and now after it coming back to haunt them politically they try to pin it on him ..Remember republicans ever since Pres.Obamas inaugeration besides obstructing,filibustering jobs,infastructure bills you've tried your damnest to pin something on Pres.Obama to bring him down with these supposid theories,Issa created committes but all this unpatriotic brinksmanship been doing actually is bringing you ignorent selfserving republicans down right!!Remember republicans you sow what you reap and boy have you been up to your ears in reaping haven't yah...Boy can't wait till midterms when all this partisanship crap will be a thing of the past!!!

    July 10, 2013 03:24 pm at 3:24 pm |
  8. Jobu

    I'm a student.
    We remember how politicians treat us.
    This was very, very bad...

    July 10, 2013 03:26 pm at 3:26 pm |
  9. yeahright

    brian in dc

    The Senate is controlled by Democrats.
    The Senate Democrats proposed a plan.
    The Senate Democrats defeated the plan.

    --
    BS. Apparently you do not know what a filibuster is? The democrats do not have 60 votes, so therefore they do not "control" the senate. Go to senate dot gov, and see who voted for the bill. Hint, not one republican. You can polish that obstructionist turd all you want, but it is still a turd.

    July 10, 2013 03:27 pm at 3:27 pm |
  10. Name Uche Agonsi

    Isn't it funny to hear of increasing number of school dropouts in the world most developed country . And how would the phenomenon be dealth with, after the water has spilled. The cost of repairs obviously should be much more than the prevention cost. If America does not have money to educate its citizens or the cost of education creates increasing rate of illiteracy, why must it be spending money policing the world. This is simply the case of the needle that perfects in mending people's asses while it cannot sew its own ass.....at stich in time saves nine.

    July 10, 2013 03:27 pm at 3:27 pm |
  11. Brian

    So a majority support the idea but that doesn't count anymore.

    July 10, 2013 03:28 pm at 3:28 pm |
  12. just askin

    why are these kids so worried about all this college debt when obama and the democrats have heaped another $7 trillion on their backs in 5 short years. (soon to be $10 trillion).

    wake up you dumb little idiots. you are being turned into indentured government slaves.

    July 10, 2013 03:30 pm at 3:30 pm |
  13. Scott

    If the kiddies can't pay for the schooling without a cheap loan, then they need to either save for school tuition OR join the military and EARN the G.I. Bill. This is called "personal responsibility" which is an anathema to libs.

    Scott

    July 10, 2013 03:32 pm at 3:32 pm |
  14. Steve F

    Student loans should be set at the same rate banks borrow. Why? Because student loans are virtually not dischargeable in bankruptcy, the government will take tax refunds to pay delinquent accounts and they can garnish your wages to get the money back. There is virtually no risk with this venture.

    If the government needs money, they need to stop wasteful spending such as the "end of the fiscal year" shopping sprees and as a veteran I hate to say this (8 years in the Army), cut a few of the benefits at the VA – co-pays implemented and such. I would do something similar with Congressional privileged such as healthcare, retirement packages, etc.

    July 10, 2013 03:33 pm at 3:33 pm |
  15. emaa

    Looks like there are a lot of erroneous beliefs circulating around here.

    1. Harvard is LESS expensive than many State universities and MUCH less expensive than its private school equivalents. Ivy League does not = expensive. State schools and private schools are very nearly equally priced these days.

    2. As a faculty member of a private University, I can tell you that 86% of our students receive need-based financial aid. If students stayed home from lack of aid, our school would have to shut down as we wouldn't have enough students and tuition to pay the electric bill. Asking a student whose bank account is filled with babysitting money and summer Dairy Queen jobs to afford the full cost of even a Community College is impossible. College would therefore only be accessible (as it was in the past) to students with wealthy parents.

    3. An entire generation of our country would swiftly become less educated, Universities would shut down, unemployment would rise and research and engineering that takes place primarily in academia these days would grind to a halt.

    To me, keeping the next generation uneducated and jobless and stopping our country's research does sound quite a bit like the Republican ideal, so I understand why they are excited by this plan. At this point we would have to be uneducated and scared to vote for them – this is the only way they can keep any last shred of influence they have over a country that seems to be disinclined to be ruled by anti-intellectual, power hungry old white men.

    July 10, 2013 03:33 pm at 3:33 pm |
  16. ...

    Subsidies for Big Oil but none for students! What a great government.

    July 10, 2013 03:34 pm at 3:34 pm |
  17. Mike McInnis

    Many comentors here apparently do not folow what is going on. The current rate is 3.4% and will soon jump to 6.8%. There are two dofferent attempts ongoing to stop this jump. The one presented in this article is a temporary stop gap, which does nothing about the underlying problem that the rate must be approved by the government each year. The second one was first presented by Obama and it ties the student loan rate into the federal interest rate, and indexes it so that it doesn't have to be argued about each year.

    Oddly, the Republicans have decided they think that is the correct approach and you have the Republicans and Obama against the Democrats who want to continue the yearly fight.

    July 10, 2013 03:34 pm at 3:34 pm |
  18. ...

    So they help Big Oil, Big Money, Big Auto, and Big Pharma but won't help students.

    July 10, 2013 03:35 pm at 3:35 pm |
  19. rs

    Scott

    If the kiddies can't pay for the schooling without a cheap loan, then they need to either save for school tuition OR join the military and EARN the G.I. Bill. This is called "personal responsibility" which is an anathema to libs.

    Scott
    ______________________
    Hello Scott- News Flash- we're just ending 2 wars. I think it safe to say there won't be a big drive to add more soldiers to the ranks. Meanwhile- you realize your little solution costs the government money, right?

    July 10, 2013 03:39 pm at 3:39 pm |
  20. BrianL

    Hey now recent grads and those still in college, make sure you RUN to the voting booth next time and be sure to vote Republican.
    You can see how much they are trying to help you. LOL
    Any student who voted republican deserves a higher interest rate.

    July 10, 2013 03:40 pm at 3:40 pm |
  21. joe

    Here we go Scott pretending with your sweat and tears you paid tuition off with hard work, your parents probably paid for your whole education. Try telling an 18 year old to save 30,000 dollars a year for tuition with the current job market. Coming from someone who was in the military, there were a lot of individuals who did not take the G.I. Bill, so go take your personal responsibility and shove it up your ass. You can go work for the senate while your at it.

    July 10, 2013 03:40 pm at 3:40 pm |
  22. The Real Tom Paine

    -Scott

    If the kiddies can't pay for the schooling without a cheap loan, then they need to either save for school tuition OR join the military and EARN the G.I. Bill. This is called "personal responsibility" which is an anathema to libs.
    *********************
    why are these kids so worried about all this college debt when obama and the democrats have heaped another $7 trillion on their backs in 5 short years. (soon to be $10 trillion).

    wake up you dumb little idiots. you are being turned into indentured government slaves.
    ********************
    Read it. This is how the Right views one of the demographic groups they need in order to win.

    July 10, 2013 03:41 pm at 3:41 pm |
  23. Alex

    "Proponents needed 60 votes to succeed with the plan to roll back rates but only got 51 with the tallying splitting along party lines." – This is not accurate reporting 51 votes for is not along party line – Dems have more then 51 votes – meaning some Dems voted against the bill.

    July 10, 2013 03:41 pm at 3:41 pm |
  24. anzer

    I think everyone needs to realize this is America...and this generation will be in control of the world....if we don't give them an education or allow them the opportunity...what the hell is the world going to like in 30 years. Bunch of lazy, over weight adults living off the government anyway. Why not educate them and let them get a good job so we don't have to support them for the rest of their lives.

    July 10, 2013 03:41 pm at 3:41 pm |
  25. Degrees Not needed

    Who needs a degree. Drop out of high school work for the CIA and get top secret clearance.

    July 10, 2013 03:42 pm at 3:42 pm |
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