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 Healthcare: Public support mounts for action on opioids Clinton slams convicted ex-coal chief West Virginia Dem defends Clinton support despite coal remarks MORE (D-W.Va.), Richard BurrRichard BurrThe Trail 2016: The establishment comes around Intel leaders push controversial encryption draft Moulitsas: 2016 dim for GOP MORE (R-N.C.), Tom CoburnTom CoburnGOP faces existential threat Sanders tops 2016 field in newly deleted tweets The Hill's 12:30 Report MORE (R-Okla.), Lamar AlexanderLamar AlexanderDemocrats block energy spending bill over Iran amendment Overnight Finance: Puerto Rico pressure builds; Big tariff vote Wednesday Senate votes to increase wind energy funding MORE (R-Tenn.), Angus KingAngus KingCapitol Hill’s forest champions helped secure win for wood The Hill's 12:30 Report Merkley becomes first senator to back Sanders in White House bid MORE (I-Maine) and Tom CarperTom CarperLobbying World Senators urge White House to speed cyber policy updates Retailers battle financial sector over data breach legislation 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 MenendezSenate confirms Obama's long-stalled ambassador to Mexico Democrats block energy spending bill over Iran amendment Senate close to voting on Mexico ambassador 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.