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. Scott

    Brian,
    A simple majority never has ruled in the Senate and both parties are scared to change that. However, a simple majority always has counted in the House.

    Scott

    July 10, 2013 03:42 pm at 3:42 pm |
  2. Jay

    The government does not make money on student loans (in most years). The $51B number is a result of yet another convoluted CBO estimating process (the one that time and time again proves inaccurate). To whomever was critical of my 'money we don't have' comment, Google 'Washington Post student loan government profit and read that piece. It's quite telling, IMO.

    July 10, 2013 03:43 pm at 3:43 pm |
  3. anzer

    I would like to comment on the person who said ....EARN G.I.Bill...that is not fair...not everyone in the world can pass the basics to get in the army. My oldest daughter got hurt at a young age and is not able to pass the requirements to get in the army. And so now she is struggling to go to Med school on her own. More power to the people who can make in the ARMY but again...how is the Army funded....Government money. So we are still loosing...right!

    July 10, 2013 03:45 pm at 3:45 pm |
  4. GOP plan

    1) take away funding to support a program
    2) watch as program falters or becomes more expensive
    3) blame program and attempt to dismantle.
    4) tell the poor they can't have it.

    I think we are on step 2 right now.

    July 10, 2013 03:45 pm at 3:45 pm |
  5. bros

    I love how people say "attend a school you can afford if you can't afford to pay off the loans"

    There are literally no schools that a student can attend without having to take out a loan, unless, of course, you are a trust fund baby with a CEO for a dad, then you're fine.

    Otherwise, even state schools are prohibitively expensive.

    So, baby boomers, wake up and realize that you are screwing over everyone with the hatred you spew.

    You have created boundless inequality in this country and are the cause of the economic downturn of this nation. We are not the greatest nation on earth and have not been for a long time because of policies you support and your fellow Boomers implemented.

    July 10, 2013 03:45 pm at 3:45 pm |
  6. kkvisnjik

    USA will outsource the students too. They don't even need US born students ... just problems with them in the long run... why to educate them when they can outsource as many profiles as they need and/or import them on a H1B visas.

    July 10, 2013 03:46 pm at 3:46 pm |
  7. Steveo

    Reminds me of a suggestion I heard coming from Oregon. Free schooling, just pay 3% of your salary for 24 years! That sounds nothing like free. It does however sound like indentured servitude.

    July 10, 2013 03:46 pm at 3:46 pm |
  8. Richard

    Scott,

    I spent my time is SE Asia and worked two jobs while in both undergraduate and graduate school. The loans would be cheap if we didin't keep bailing out the rich. Hopefully, someday you will be rich, because if you're not, you will eventually smarten up, and relalize the returds do not give a rats @ss about you. But keep feeding them, you will be enlightened!

    July 10, 2013 03:46 pm at 3:46 pm |
  9. measurer

    some students just cant find jobs after graduating.. they should atleast be able to file loans on bankcrupty. Sometime you just need 1 more chance to get back on your feet, not a thought that i need to leave this country because of this. I think many will leave to go foreign countries because we are so heavily in student debt.

    July 10, 2013 03:47 pm at 3:47 pm |
  10. Bill

    Easy student loan availability is fueling the fraud that is college.

    If the money weren't available, college would not cost half of what it currently does.

    July 10, 2013 03:49 pm at 3:49 pm |
  11. Not_an_Idiot

    @brian in dc, you are a complete moron. How do you come to the conclusion that because the Dems. "control" the Senate, they defeated the bill? Why would the propose a plan, only to vote against it? I'm assuming you have little to no knowledge about how Congress, and in particular the Senate, actually works. The vote was 51 in favor of the Dems. proposed plan. That would be 51 DEMOCRATS voted FOR the bill. EVERY SINGLE REPUBLICAN VOTED AGAINST IT while also filibustering the bill (which means the bill needed 60 votes to pass). But I'm sure because you are so simple minded you did not know this before you commented. "Forget facts! Let me spew my idiotic thoughts from my mouth without knowing wth I'm talking about! Murica!" – brian in dc before posting.

    July 10, 2013 03:54 pm at 3:54 pm |
  12. Sniffit

    "I want my son to go to College, but I refuse to see him or me buried under a mountain of debt."

    Banks and large corporations want nothing more. Huge debt like that makes the banks oodles of money and it puts pressure on recent graduates to take table-scraps salaries in order to "take what they can get" and stay out of default when they enter the workforce.

    July 10, 2013 03:55 pm at 3:55 pm |
  13. RIMom

    I find this all appalling that folks actually thing that kids should not utilize loans to help pay for their college education. You buy a car and take a loan and pay on it. You buy a house an pay on it. You have credit cards used to purchase needed and not needed items, but you would deny someone an education if at 17 or 18 years old they don't have the cash to pay for it. Shame on you!!!!!!!!!!!!!

    July 10, 2013 03:55 pm at 3:55 pm |
  14. Bob

    In 2007 the rate was around 6.8%. The democrats controlled Congress. They lowered the rate by half going into 2008. but only for 4 years (until July 2012) Last year, not wanting a fight going into the election, both sides agreed to keep it down for 1 more year. Now we're up against it again.

    Question??? Why did the Dems only lower it for 4 years in 2008? Why not keep it down? They gave the public another bone in 2008, everyone applauded, no one remembered it was a short hit and then the floor fell out.

    July 10, 2013 03:56 pm at 3:56 pm |
  15. Peg

    So the GOP blocked it again – why don't they just say that?

    July 10, 2013 03:57 pm at 3:57 pm |
  16. cedrick graves

    over paid university football coaches like Nick Saban and few others are the reason why most colleges are increasing the cost of college.

    July 10, 2013 03:59 pm at 3:59 pm |
  17. Not_an_Idiot

    @Scott I hope if you have kids that they never have to join the military just to have the chance to get a higher education at the cost of putting their lives at risk every day. And for anyone who thinks interest rates doubling doesn't add that much to what you would be repaying over 10-20 years, then its clear you do not understand the concept of interest. Even if the interest rate was lower, its still not a "cheap loan" you putz. Tuition costs are outrageous (another topic all together) AND the government is only allowing the rates to go up so they can use the PROFIT from the loans to help pay down national debt, all the while giving banks a 0.75% interest rate! Rethink your position. Know the facts. Don't be a sheep and understand that the only thing that comes out of this rate increase is more people on welfare because they can't even get an entry level job somewhere without a bachelor's degree, which they can no longer afford.

    July 10, 2013 04:03 pm at 4:03 pm |
  18. joe

    When some of you realize this has nothing to do with Democrats and Republicans and more to to do with Rich class Vs. the vast Struggling Class then maybe change will happen. What about middle class? I didn't know it existed....I think the younger generation understands that education cannot be free in this wonderful capitalist society ........(okay) but it can at least be affordable.

    July 10, 2013 04:05 pm at 4:05 pm |
  19. Donnie the Lion

    I can see raising it, but not doubling it. As for joining the military to pay for your education.....the military is turning recruits AWAY now....they are pretty much maxed out budget wise.

    Also, ask any vet recruited in the last 10 years how honest Army recruiters are when discussing recruitment benefits.

    July 10, 2013 04:08 pm at 4:08 pm |
  20. AZLib

    Funny, how banks get gov money are zero interest rate, 50% of American largest corporations pay no tax, the super wealthy use long-term capital gains to pay less than their fair share, but when it comes to students, the old, the sick the frail and least powerful in our society the buck stops there. Time we allow students to file bankruptcy on their loans if they have to pay full rate for them then why not? Corporations file bankruptcy all the time, the rich use bankruptcy as a strategic tool. We always have enough money to fight unnecessary wars, fund rovers to mars, the latest air craft that will never fly in combat, but when it comes to the poor the weak the sick we are broke. The government has determined its cheaper to insource and allow smart people from India, china and europe to come here rather than allow Americans to get educated in the first place. H1 visas are up, if we would provide a better choice and better cost for our own children we wouldn't need help from these other countries. Oh well....

    July 10, 2013 04:08 pm at 4:08 pm |
  21. jimboe

    I'd rather give all my money to the war machine than have educated AMERICUNS! Yeah...durdurdurrrrrdurrrrr

    July 10, 2013 04:10 pm at 4:10 pm |
  22. Sniffit

    "over paid university football coaches like Nick Saban and few others are the reason why most colleges are increasing the cost of college."

    LOL...no it's not. Do you have any idea how many millions large football colleges' football programs generate? Ridiculous.

    July 10, 2013 04:12 pm at 4:12 pm |
  23. Woe issue

    If they want to increase rates, maybe our government and officials should take pay cuts, insurance cuts ( and pay for them).
    May be when they live like the rest of us there views will change.

    July 10, 2013 04:12 pm at 4:12 pm |
  24. dave

    I feel it has to stop somewhere. If they want to go to school, go get a part time job and earn it. Instead of getting drunk, getting high, get a job. During spring break work instead of being a jerk. I am in favor of cutting all the fat from this country. Get rid of welfare bums. If you don't work you don't eat. Kid today need to be doing what they are told to do. Anyone can work .Their is no reason for anyone not working. Instead the kids today want it handed it to them. It dose not work that way.

    July 10, 2013 04:16 pm at 4:16 pm |
  25. ...

    "Get a job."

    News flash: The only constant in the world is change. Today's world is NOT the same as when you were at the same age.

    July 10, 2013 04:22 pm at 4:22 pm |
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