On July 1, need-based student loan rates doubled from 3.4 percent to 6.8 percent. Reed’s bill would retroactively bring some student loan rates back down to 3.4 percent.
“The legislation passed by the House would balance the budget on the backs of struggling students,” Reid said earlier Monday. “The House legislation is worse for students than doing nothing at all. Under the House plan, as interest rates start to rise, student loan rates will rise with them. Soon, loan rates will be more than double.”
The Senate attempted last month to pass legislation that would have extended the 3.4 percent rate for two years but there wasn’t enough support to overcome the Republican filibuster requiring 60-votes to advance the bill.
A bipartisan group of senators have introduced an alternative bill similar to what the House passed last month, but it’s unclear if Reid will allow that bill to come to the floor for a vote.
Sens. Joe ManchinJoe ManchinOvernight Cybersecurity: Dems split on Manning decision | Assange looking to make deal What we learned from Rick Perry's confirmation hearing Manning commutation sparks Democratic criticism MORE (D-W.Va.), Richard BurrRichard BurrWant to streamline government? Start with the Pentagon. Senators introduce dueling miners bills Trump education pick to face Warren, Sanders MORE (R-N.C.), Tom CoburnTom CoburnCoburn: Trump's tweets aren't presidential The road ahead for America’s highways Rethinking taxation MORE (R-Okla.), Lamar AlexanderLamar AlexanderSenate committee vote on DeVos postponed Cheney calls for DeVos to be confirmed ‘promptly’ With Trump pick Tom Price, cool heads can prevail on health reform MORE (R-Tenn.), Angus KingAngus KingIn Energy hearing, Rick Perry capitulated to Big Gov on all fronts Overnight Finance: Scoop – Trump team eyes dramatic spending cuts | Treasury pick survives stormy hearing Overnight Energy: Perry makes his case to lead Energy Dept. | Dems alarmed by spending cut plans MORE (I-Maine) and Tom CarperTom CarperPruitt says his EPA will work with the states Dems prepare to face off with Trump's pick to lead EPA Justice, FBI to be investigated over Clinton probes MORE (D-Del.) introduced the Bipartisan Student Loan Certainty Act, S. 1241, which sets all undergraduate student loans to the U.S. Treasury 10-year borrowing rate plus 1.85 percent with a 8.25 percent cap on consolidated rates.
Before adjourning for the evening, Reid passed by unanimous consent the Organization of American States Revitalization and Reform Act. Sen. Bob MenendezRobert MenendezCarson likely to roll back housing equality rule Live coverage: Tillerson's hearing for State Booker to join Foreign Relations Committee MORE (D-N.J.) introduced S. 793, which directs Secretary of State to submit to Congress a multiyear strategy to carry out the diplomatic engagements of the Organization of American States.
This article was updated at 7:10 p.m. to include the passage of S. 793.