U.S. Senate reaches deal to keep student loan rates low

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U.S. Senate leaders announced Tuesday that they have reached a deal that will allow them to avoid increasing student loan interest rates, just five days before the rates were set to double.

In the months leading up to the expiration, Democrat and Republican leaders largely agreed on the necessity of maintaining the current 3.4 percent interest rate, but differed on how to generate the $6 billion in subsidies needed to maintain the reduced interest rates to keep rates from doubling for more than 7 million students with Stafford loans.

President Barack Obama and college students around the country have campaigned to push for congressional action to stop the increase.

“We’re pleased that the Senate has reached a deal to keep rates low and continue offering hard-working students a fair shot at an affordable education,”  reads a statement issued by the White House Office of the Press Secretary on Tuesday. “Higher education has never been more important to getting a good job.”

If Congress does not pass the Stop the Rate Hike Act of 2012 by the end of the month, rates will double to 6.8 percent for students with Stafford loans. The bill still needs to be voted on by Congress by the July 1 deadline.

“We hope that Congress will complete the legislative process and send a bill to the President as soon as possible,” the statement reads.

Adelyn Baxter is the news editor.

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  • libsrclowns

    From the White House Office of the Press Secretary on Tuesday. “Higher education has never been more important to getting a good job.”

    LOL, somebody should tell UCB’s Lib Robert Reich

    Former Clinton Secretary of Labor Robert Reich, Berkeley Professor and Obama supporter has an unsettling message for 2012 college graduates:  “You’re screwed.”
    The blistering verdict came as part Mr. Reich’s Sunday column addressed to “Members of the Class of 2012″ wherein the former Labor secretary decries the current state of jobs and opportunities for recent college graduates entering the Failed Obama economy:
    As a former secretary of labor and current professor, I feel I owe it to you to tell you the truth about the pieces of parchment you’re picking up today.
    You’re screwed.
    First, you’re going to have a hell of a hard time finding a job in the Obama economy.  The job market you’re heading into is still bad. Fewer than half of the graduates from last year’s class have as yet found full-time jobs. Most are still looking.  
    That’s been the pattern over the last three graduating classes ever since Obama was elected:  It’s been taking graduates more than a year to land the first job. And those who still haven’t found a job will be competing with you, making your job search even harder.
    Contrast this with the Bush class of 2008, whose members were lucky enough to get out of here and into the job market before the Great Recession really hit. Almost three-quarters of them found jobs within the year.
    Last year’s young college graduates lucky enough to land jobs had an average hourly wage of only $16.81, according to a new study by the Economic Policy Institute. That’s about $35,000 a year – lower than the yearly earnings of young college graduates in 2007, before the Recession. The typical wage of young college graduates dropped 4.6 percent between 2007 and 2011, adjusted for inflation.

    Yup, even hard core LibTard Reich calls out Obama as a failure.  If you want to get a good job you must oust Obama and his economic illiterate Lib cabal in Washington.