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


Filed under: Education
soundoff (264 Responses)
  1. America Suckered Again

    ...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.
    Hardly. Spending by the education sector has far outpaced inflation. How many well managed businesses do you think offer tenure? Just one of the accepted practices that makes no sense. It's time to imagine that the endless flow of cash is not so endless.

    July 10, 2013 01:50 pm at 1:50 pm |
  2. Guest

    Anyone saying that this is in some way a measure against affordable college has totally missed the forest for the trees. Loans are supposed to be the last resort, not the first line of defense. If college TUITION cost less, the 6% interest rate on the tiny loans would not be a problem for the few people who would still need loans.

    If you're gonna complain about the rich people keeping the poor people out, why are you NOT complaining about the rich college board-of-directors setting the price of tuition at discriminatory levels? THOSE are the bad rich people in this situation – not the ones who see loans and perpetual debt as a unsustainable way of life for the poor in this country.

    July 10, 2013 01:51 pm at 1:51 pm |
  3. larry simpson

    considering the majority of students vote democrat, that shows they aren't learning anything anyway!

    July 10, 2013 01:51 pm at 1:51 pm |
  4. Name

    Its not the government's fault its our fault for not standing up for each other tommorrow they will have us arguing over more money problems, so if u still percase over priced gas daily and give ur money to the the gov that curropts us all than shut up cause its ur fault they keep getting richer while we keep being sheep for these comeys

    July 10, 2013 01:51 pm at 1:51 pm |
  5. Scott

    The real problem is, as long as these loans are dished out like candy, colleges have no incentive to lower costs of tuition and board to begin with. They will get their money from the taxpayers...while saddling these kids with debt. So sorry, I didn't get these cheaper interest rates like you kids are. I used loans, credit cards and JOBS to pay for my college education. I didn't run around to be a nut and appear on Campus PD like these kids do now. Maybe that few thousand dollars you spend on Spring Break would be better spent on your tuition.

    July 10, 2013 01:51 pm at 1:51 pm |
  6. CosmicC

    @DG – Yes. Public education should cover post-secondary education, whether it's college or a trade school. At a minimum, the cost of in-state tuition at a public school should be covered.

    July 10, 2013 01:51 pm at 1:51 pm |
  7. Anonymous

    While these are un-secured loans to an extent, it makes you sign a promissary note that protects these loans from being claimed in a bankruptcy. There are existing provisions for payroll and tax refund garnishment.

    July 10, 2013 01:53 pm at 1:53 pm |
  8. CosmicC

    @America Suckered Again – you need to do a bit more research. The reasons higher education costs have increased do include greed at for-profit schools, but the majority of it is really that few people pay the full cost. Those who do are subsidizing those who rely on aid and need-based scholarships (the vast majority of students). The increase in subsidies from other students has been driven by the reduction of other sources and the ease by which this can be hidden.
    As far as tenure goes, college professors are not covered by union contracts, so tenure may give them seniority rights, but it is not an absolute protection. The adage "publish or perish" still has a strong hold on academia. If you don't produce you will be forced out.

    July 10, 2013 02:01 pm at 2:01 pm |
  9. sonny chapman

    Doesn't the Repub. Party CLAIM to support the American Dream ? Oh hell, just borrow the $ from Poppie or your Trust Fund.

    July 10, 2013 02:02 pm at 2:02 pm |
  10. Dominican mama 4 Obama

    How will the new interest rates affect previous Stafford loans that have yet to be paid off?
    Anyone know?

    July 10, 2013 02:05 pm at 2:05 pm |
  11. Dan

    I'd vote to lower the interest rate on these loans if they would start limiting the Choices of programs that the government will provide guaranteed loans for.
    Liberal Arts degrees for example that can't provide a graduate with a job that pays something do not deserve Federal Funding!!!!!!!!!
    ie, no loans for basket weavers, but guarenteed loans for engineering, math majors.

    July 10, 2013 02:06 pm at 2:06 pm |
  12. Matt

    Isn't 51 out of a hundred a majority? What idiot decided that 60 votes out of a 100 is a majority?

    July 10, 2013 02:06 pm at 2:06 pm |
  13. Evergreen

    Corporate America has figured out that it is cheaper to issue visas for foriegn educated workers. So why would congress be concerned with educating Americans.

    July 10, 2013 02:07 pm at 2:07 pm |
  14. Larry

    Govt is run by big business, big business wants to control education so they can make big money off of it, in order to take control of it they must first destroy education as we do it today. To that end they will lower enrollment by any means possible including raising loan rates, raising tuition costs, raising the cost of living, and so on until students graduating high school must go to work rather than college. Eventually only the rich go to college and only the colleges that appeal to the rich will be open for business. Then the world of big business will step in with a cheap alternative method (via computer at home) of education and take over the role of educatiors of America. From that moment on the value of education in this country will decline until it is worth nothing.

    July 10, 2013 02:07 pm at 2:07 pm |
  15. Anonymous

    "So I guess some of you need to also include your savior Obama in your uninformed rants."

    If the past two presidential elections proved nothing else, 2008 and 2012 did prove that there will come a point in time down the road wherein if the Republican Party plans on remaining a viable party it will absolutely need votes from the left. This constant criticism and condescending snark directed at our current President does not bode well for the political future of right wing America, regardless of what Rush Limbaugh, Ann Coulter, Fox News, The Drudge Report, and Glenn Beck may otherwise opine on their blogs and/or talk shows.

    July 10, 2013 02:07 pm at 2:07 pm |
  16. CommonCents

    Maybe if students were smarter, and started out at a Community College for 2 years, then transferred their credits to a 4 year institution, they could cut out quite a bit of debt. Also, dont assume you will get a job right out of college that is going to pay big bucks. You might be stuck searching for a job for a while and still expected to pay your loan payments.

    July 10, 2013 02:08 pm at 2:08 pm |
  17. glenview0818

    Anyone that thinks this is a political party issue is on the wrong track. Anytime someone with no collateral, can borrow 100K to get a history degree, there should be red flags going up all over the place. How on earth does anyone think that this type of degree is going to pay back that type of money. Colleges are stuffed to the gills with people getting degrees that have no value in the market place. Interest rates have nothing to do with the real issue and in fact may be compounding it. Get the government out of the college loan business and that will be the real fix.

    July 10, 2013 02:08 pm at 2:08 pm |
  18. Tony

    Who pays?

    July 10, 2013 02:08 pm at 2:08 pm |
  19. Erik in Houston, TX

    6.8% isn't an unreasonable interest rate for one to pay for choosing to go to college and invest in their future. Not coming from money, I took these loans at around 7.3% and worked to pay them off.

    July 10, 2013 02:08 pm at 2:08 pm |
  20. Rudy NYC

    ...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.
    I don't know if that has had as much of an impact as the luxury facilities that many schools have been building to attract students. As far as funding cuts go, I think that it really depends upon the school. Not every school receives funding from the same sources: i.e.; private schools would not receive as much state funding as a public, state-run school would. But, all types of schools have been adding luxury facilities, which only adds to the cost to maintain them.

    July 10, 2013 02:12 pm at 2:12 pm |
  21. bible thumper

    I think this move is great. It may get young people to realize that college is NOT for everyone. Right now the jobs that are out there are for today and in the near future are in engineering, medical, and other high tech fields. If you are not interested in those fields, then don't bother getting a degree. You are wasting your time. If you or your family can't afford it, go serve in the military for 5 yrs. NOTHING IS FREE

    July 10, 2013 02:15 pm at 2:15 pm |
  22. Guest

    Anyone unhappy with minority-favoring rulings should read up on every civil rights movement in the history of the country.

    July 10, 2013 02:18 pm at 2:18 pm |
  23. Anonymous

    "Doesn't the Repub. Party CLAIM to support the American Dream ? Oh hell, just borrow the $ from Poppie or your Trust Fund."

    Comments like this are just absurd, if not worse. Take the partisan bias out of it and what do you have? College tuition is rising at a troublesome rate, due in no small part to the availability of student loans. People are also showing little hesitation these days at taking out tens if not hundreds of thousands of dollars in loans that they will never be able to repay. Fewer student loans should help the cost of college, as well as helping prevent likely defaults. Students need to – in large part – stop using student loans and either pay for school or attend a school they can afford. This is also saving the government money they (we) simply do not have.

    July 10, 2013 02:18 pm at 2:18 pm |
  24. Tony

    I think it is funny how any tax rate hike on the rich is terrible and the worst thing the government could possibly do to our citizens, yet squeezing as much as they can out of the youth who wish nothing more than to further their education and make their lives more prosperous is nothing to even turn a check on. This interest rate hike means a person could pay an extra $40,000 in their life time. If the government is looking for more revenue, this should be the last avenue.


    July 10, 2013 02:20 pm at 2:20 pm |
  25. OnTheRoad

    Want to fix this problem? Force a 10 to 20% cut in college cost across the board at all state schools across the country! Make them cut the over the top cost! A local college had never had a football program, their regular per hour cost is not right at $700 per hour, and they decided that they needed a football program along with a new $40,000.000.00 football stadium???? If you are a student at this college, you deserve to spend the rest of your life paying off your student loans!!!

    July 10, 2013 02:22 pm at 2:22 pm |
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