Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
August 3, 2015

Democrats Pan House Student Loan Bill, Prep For Action

Senate Democrats hate it. The White House said it would veto it. And yet, the House passed a student loan bill Thursday, increasing the pressure on Democrats to move their own bill.

According to a senior Democratic aide, the timing of Senate floor debate on its student loan bill depends largely on the other legislative items on the calendar. The Democratic student loan alternative, introduced last week by Health, Education, Labor and Pensions Chairman Tom Harkin, D-Iowa and Sen. Jack Reed, D-R.I., could be offered as an amendment to the farm bill when the Senate returns from Memorial Day recess. If it’s not, or the Senate does not wrap work on the farm bill before moving to immigration legislation, leaders could move to advance the student loan measure as a stand-alone after immigration.

As we reported earlier today, Senate Majority Leader Harry Reid, D-Nev., does not want to push for any bill that might be deemed controversial before immigration is brought to the floor. There currently is a delicate bipartisan balance to the immigration effort and Democratic leaders do not want unrelated, outside issues to thwart what likely would be the signature legislation of this Congress and President Barack Obama’s second term.

But Reid also may not have much of a choice, considering Congress must act before the Fourth of July recess or student loan interest rates will double.

The key difference between the House and Senate student loan bills is that the House bill does not lock in interest rates for loans at the level when the loan is acquired. As it stands, students take out loans for each individual year of education, all subject to different rates.

For a smart look at the House measure, non-partisan estimates of its cost and the administration’s objections to savings from student loans being used to reduce the deficit, read more from our CQ colleague Lauren Smith:

The House measure would peg the interest rate for the subsidized and unsubsidized portions of the Stafford federal student loan to the 10-year Treasury rate plus 2.5 percent. It would also shift loans for graduate students to the 10-year Treasury rate plus 4.5 percent. Those rates would be capped at 8.5 percent and 10.5 percent, respectively.

The bill would reset the interest rates each year and allow them to fluctuate with the market, unlike the president’s proposal, which would set the interest rates each year based on the Treasury’s actual cost of borrowing and then fix it for the life of the loan.

In his budget, the president proposed to shift the subsidized portion of the Stafford loan to 0.93 percent above the 10-year Treasury note and the unsubsidized portion of the Stafford loan at 2.93 percent above the 10-year Treasury note. It would modify the loan for graduate students to 3.93 percent above the 10-year Treasury note. The administration’s proposal does not include a cap.

According to the Congressional Budget Office, the House bill would save the federal government $990 million over five years and $3.7 billion over 10 years. But the White House statement issued Wednesday noted that “the administration believes that student loan interest rates should not be raised to reduce the deficit.”

The statement also noted that the House measure lacks the president’s proposal to extend various repayment options to borrowers who have already left school.

Comments (27)

Leave a Comment

Your email address will not be published.

author email

  1. Anonymous

    June 27, 2015
    3:13 a.m.

    Hello, i believe that i noticed you visited my blog thus i came to “go back the want”.I’m trying to find things to improve my web site!I assume its adequate to make use of some of your ideas!!

    http://www.sdorttuiiplmnr.com/

  2. Anonymous

    July 4, 2015
    6:42 p.m.

    Today, I went to the beach with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is completely off topic but I had to tell someone!

    http://www.furtdsolinopv.com/

  3. Anonymous

    July 6, 2015
    6:10 p.m.

    Its great as your other blog posts : D, regards for putting up. “Talent does what it can genius does what it must.” by Edward George Bulwer-Lytton.

    http://topcheapinsurance.com/homeowners-insurance.html

  4. Anonymous

    July 7, 2015
    4:30 p.m.

    Thank you for every other magnificent article. The place else may anybody get that kind of information in such an ideal means of writing? I have a presentation next week, and I’m on the search for such info.

  5. Anonymous

    July 9, 2015
    6:07 a.m.

    Howdy! I’m at work browsing your blog from my new iphone 4! Just wanted to say I love reading your blog and look forward to all your posts! Carry on the superb work!

    https://social.msdn.microsoft.com/Profile/Infoasistencia

  6. Anonymous

    July 11, 2015
    10:20 a.m.

    Very interesting points you have observed, appreciate it for posting.

    http://www.intactgaming.com/profile/duck50gander

  7. Anonymous

    July 13, 2015
    1:06 p.m.

    Spot on with this write-up, I really suppose this web site needs way more consideration. I’ll most likely be again to read way more, thanks for that info.

    http://homeownersinsurancem.com/amica-car-and-home-insurance.html

  8. Anonymous

    July 13, 2015
    1:45 p.m.

    As a Newbie, I am permanently exploring online for articles that can help me. Thank you

    http://homeownersinsurancem.com/amica-car-and-home-insurance.html

  9. Anonymous

    July 13, 2015
    5:54 p.m.

    I will immediately grasp your rss as I can not to find your email subscription hyperlink or e-newsletter service. Do you’ve any? Kindly allow me realize in order that I may subscribe. Thanks.

    http://www.wat.tv/video/salon-massage-naturiste-massage-79q5z_79q5x_.html

  10. Anonymous

    July 13, 2015
    6:36 p.m.

    I really appreciate this post. I’ve been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thx again

    http://www.wat.tv/video/salon-massage-naturiste-massage-79q5z_79q5x_.html

  11. Anonymous

    July 13, 2015
    10:52 p.m.

    Great – I should definitely pronounce, impressed with your web site. I had no trouble navigating through all tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Excellent task..

    http://vimeo.com/126527913

  12. Anonymous

    July 14, 2015
    12:40 a.m.

    I carry on listening to the newscast talk about getting free online grant applications so I have been looking around for the best site to get one. Could you tell me please, where could i acquire some?

    http://vimeo.com/126527913

  13. Anonymous

    July 17, 2015
    5:38 a.m.

    You are my aspiration, I have few web logs and infrequently run out from to post : (.

    https://www.zotero.org/temple82glider

  14. Anonymous

    July 17, 2015
    6:16 a.m.

    Some genuinely nice and utilitarian info on this internet site, besides I think the design holds excellent features.

    http://www.mainhardt.com.br/wiki/index.php?title=Florida_Car_Insurance_Rates_By_Zip_Code

  15. Anonymous

    July 18, 2015
    9:06 a.m.

  16. Anonymous

    July 20, 2015
    1:24 p.m.

    After I initially commented I clicked the -Notify me when new comments are added- checkbox and now every time a comment is added I get 4 emails with the identical comment. Is there any means you may take away me from that service? Thanks!

    http://brookereviews.com/product/wesley-virgins-fat-diminisher-pdf-review-an-fat-diminisher-honest-review-from-a-real-user/

  17. Anonymous

    July 20, 2015
    6:30 p.m.

    Yeah bookmaking this wasn’t a speculative conclusion outstanding post! .

    http://quotesautoinsurance.org/esurance-auto-home-insurance-quote.html

  18. Anonymous

    July 24, 2015
    10:17 a.m.

    very nice put up, i certainly love this web site, carry on it

    http://split.us

  19. Anonymous

    July 24, 2015
    11:47 p.m.

    he blog was how do i say it… relevant, finally something that helped me. Thanks

    https://bestplumbers.com

  20. Anonymous

    July 25, 2015
    6:25 a.m.

    I love the efforts you have put in this, regards for all the great posts.

    http://www.sdorttuiiplmnr.com/

  21. Anonymous

    July 25, 2015
    10 a.m.

    Hey! Quick question that’s totally off topic. Do you know how to make your site mobile friendly? My web site looks weird when viewing from my iphone4. I’m trying to find a theme or plugin that might be able to resolve this issue. If you have any recommendations, please share. With thanks!

    http://bathmatehydromax-x30.weebly.com/blog/produk-besarkan-zakar-yang-terbaik

  22. Anonymous

    July 25, 2015
    11:33 p.m.

    Attractive portion of content. I just stumbled upon your web site and in accession capital to claim that I get in fact enjoyed account your weblog posts. Any way I will be subscribing for your feeds or even I achievement you get entry to persistently fast.

    http://www.projectwedding.com/blog_entries/343909

  23. Anonymous

    July 28, 2015
    8:52 a.m.

    Unquestionably believe that which you stated. Your favorite reason appeared to be on the net the easiest thing to be aware of. I say to you, I certainly get annoyed while people consider worries that they plainly do not know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks

    http://www.sdorttuiiplmnr.com/

  24. Anonymous

    July 28, 2015
    5:05 p.m.

    Nice post. I learn one thing tougher on completely different blogs everyday. It’ll at all times be stimulating to read content material from other writers and practice a bit of one thing from their store. I’d favor to use some with the content on my weblog whether or not you don’t mind. Natually I’ll offer you a hyperlink in your net blog. Thanks for sharing.

    http://www.warriorforum.com/showthread.php?t=1094532

  25. Anonymous

    July 31, 2015
    12:09 p.m.

    I know this if off topic but I’m looking into starting my own blog and was wondering what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 sure. Any recommendations or advice would be greatly appreciated. Many thanks

    http://wesele-w-palacu.waw.pl

  26. Anonymous

    Aug. 2, 2015
    9:35 a.m.

    Some truly excellent info , Gladiola I observed this.

    http://www.consultdustry.com/vacancies/

  27. Anonymous

    today
    12:20 p.m.

    Very nice info and right to the point. I am not sure if this is really the best place to ask but do you people have any thoughts on where to hire some professional writers? Thank you :)

    http://workathome481.com

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...