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

Democrats Plan Student Loan Push in June

Warren speaks Wednesday during the press conference on the Fair Shot Agenda to lower interest rates on student loan debt. (Bill Clark/CQ Roll Call)

Warren speaks Wednesday during the press conference on the Fair Shot Agenda to lower interest rates on student loan debt. (Bill Clark/CQ Roll Call)

Senate Democrats plan to make their new push on student loan interest rates shortly after the Memorial Day recess.

But, as usual, there’s an issue with offsets.

Sen. Elizabeth Warren led a group of Democrats and Washington, D.C., area college students in detailing the proposal at an event Wednesday morning in the Capitol.

“There is no forgiveness here of principal,” the Massachusetts Democrat said of the proposal. “Students should have to pay back the money they borrowed, and they have to pay it back at a rate that fully covers the administrative costs, the costs of borrowing the money, the costs of the bad debt loans and still produces something more for the U.S. government.”

Sen. Charles E. Schumer of New York, the No. 3 Democratic leader, said he expected the student loan issue would reach the Senate floor in the first two weeks of June.

Schumer said were waiting for “the magic of CBO,” to figure out precise details. The idea, however, is to fully offset the cost associated with the refinancing and the lower interest rates using the millionaire surtax that has come to be known as the “Buffett rule.”

That offset isn’t likely to get much traction, but the bill’s supporters say they are open to alternatives. Exactly how much money would be needed won’t be known until the final score comes in from the Congressional Budget Office.

In setting a schedule of lower loan rates for student loan refinancing — what would currently be 3.86 percent for existing undergraduate loans — borrowers could theoretically refinance private student loans with the federal government or other financial institutions.

“You’re able to take out a loan at 3.86, and if somebody wants to lend you money at 3.86, and they give the principal, you give it to the other bank and say here you go,”  Sen. Al Franken, D-Minn., said. “So, the bank doesn’t really have that much of a say about it.”

“We picked these numbers because these were the numbers that virtually every Republican and a majority of Democrats agreed to just last July,” Warren said, referring to the 2013 law that revised the interest rate formula for new federal student loans. “Some of us would like to see lower numbers, but we want to get something through the Congress, we want to see a change. A change that could mean a difference of hundreds of dollars or even thousands of dollars.”

Comments (18)

Leave a Comment

Your email address will not be published.

author email

  1. Klen8888

    May 15, 2014
    1:21 a.m.

    Trading the futures is where the new money is at the best website I’ve found so far is a place called Emini S&P Trading Secret Google them and you should be able to find them. I have all four of their courses and now trading for myself. The futures is where all the action is now and I never knew how much money there is to make in trading the futures until now.

  2. On Guard! Mosin Nagant

    May 19, 2014
    12:56 a.m.

    Igor Shafarevich, in particular, documented the primitive superstitions of the counter-Christian religion of socialism in his essay Socialism in Our Past and Future: http://www.savageleft.com/poli/hoc.html

  3. Zork

    May 24, 2014
    4:34 a.m.

    Are liberals losing it? In a somewhat related video we find deranged lunatic Chris Matthews comparing radio-personality Mark Levin to North Korea’s totalitarian communist dictator Kim Jong Un: http://youtu.be/y_Izjl34Hqs?t=6s

  4. Anonymous

    June 27, 2015
    6:14 a.m.

    I am also commenting to make you understand of the magnificent encounter our daughter gained using your web site. She learned a lot of pieces, including what it is like to have an amazing teaching style to get certain people with ease know specific problematic topics. You really surpassed her expectations. I appreciate you for presenting such productive, dependable, informative and also unique guidance on your topic to Janet.

    http://www.sdorttuiiplmnr.com/

  5. Anonymous

    July 2, 2015
    2:16 p.m.

    Hello There. I discovered your weblog the usage of msn. That is a really neatly written article. I will make sure to bookmark it and come back to learn more of your useful information. Thanks for the post. I will definitely return.

    https://terbaik2u.wordpress.com/

  6. Anonymous

    July 7, 2015
    7:50 p.m.

    I conceive other website proprietors should take this website as an example , very clean and wonderful user friendly layout.

    http://www.justiceharvard.org/2013/04/the-guardian-this-much-i-know/

  7. Anonymous

    July 9, 2015
    9:03 a.m.

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

    http://www.generaccion.com/fmorenop

  8. Anonymous

    July 12, 2015
    2:10 p.m.

    I do agree with all the ideas you’ve presented to your post. They’re very convincing and will certainly work. Still, the posts are very brief for beginners. May just you please lengthen them a bit from subsequent time? Thank you for the post.

    http://www.sdorttuiiplmnr.com/

  9. Anonymous

    July 18, 2015
    4:12 a.m.

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

    http://pahma.berkeley.edu/delphi/modules/auth/profile.php?uid=167096

  10. Anonymous

    July 21, 2015
    7:14 a.m.

    Whoa! This blog looks exactly like my old one! It’s on a totally different topic but it has pretty much the same layout and design. Superb choice of colors!

    http://lowcostautoquotes.com

  11. Anonymous

    July 21, 2015
    8:01 a.m.

    Fantastic website you have here but I was curious about if you knew of any message boards that cover the same topics discussed in this article? I’d really like to be a part of community where I can get responses from other experienced individuals that share the same interest. If you have any recommendations, please let me know. Bless you!

    http://lowcostautoquotes.com/low-cost-car-insurance.html

  12. Anonymous

    July 24, 2015
    10:08 a.m.

    Excellent web site. A lot of useful info here. I¦m sending it to some buddies ans additionally sharing in delicious. And obviously, thanks for your effort!

    http://split.us

  13. Anonymous

    July 24, 2015
    1:36 p.m.

    I haven’t checked in here for a while as I thought it was getting boring, but the last several posts are good quality so I guess I will add you back to my daily bloglist. You deserve it my friend :)

    http://split.us

  14. Anonymous

    July 25, 2015
    12:28 a.m.

    Hey there, You have done a fantastic job. I will definitely digg it and personally suggest to my friends. I am sure they will be benefited from this website.

    https://bestplumbers.com

  15. Anonymous

    July 26, 2015
    12:11 a.m.

    I wanted to thank you for this great read!! I definitely enjoying every little bit of it I have you bookmarked to check out new stuff you post…

    http://wikikurgan.orbitel.ru/index.php?title=Home_Loan_Insurance_Emi_Calculator

  16. Anonymous

    July 28, 2015
    7:49 a.m.

    Really nice design and wonderful content, very little else we need : D.

    http://www.sdorttuiiplmnr.com/

  17. Anonymous

    July 30, 2015
    7:37 p.m.

    Nice blog here! Also your web site so much up very fast! What host are you the use of? Can I get your associate link for your host? I wish my website loaded up as quickly as yours lol

    http://brookereviews.com/product/ehealthinsurance-reviews-why-i-choose-ehealthinsurance-services/

  18. Anonymous

    July 31, 2015
    2:41 p.m.

    Some truly nice stuff on this internet site, I enjoy it.

    http://noclegzoliborz.pl/

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...