Reid said Democrats and Republicans have been negotiating a compromise bill that would retroactively address a student loan hike that went into effect earlier this month.
Republicans have pushed a permanent solution that would set loan rates based on the 10-year Treasury note, while Democrats advocated for a one-year extension of current rates. One of Democrats’ complaints about the Republicans proposals was that the cap on loans was higher than 6.8 percent.
The bill is expected to look similar to the Bipartisan Student Loan Certainty Act introduced by Sens. Joe ManchinJoe ManchinHonoring our heroes and helping our country Senators to Obama: Make 'timely' call on Afghan troops levels Dem senator: Sanders ‘doesn’t have a lot of answers’ MORE (D-W.Va.), Richard BurrRichard BurrMcConnell: ‘Ticket-splitting’ will preserve GOP Senate majority The Trail 2016: Hell breaks loose Burr, Ross in statistical dead heat in NC Senate race MORE (R-N.C.), Tom CoburnTom CoburnMcCain: No third-party foes coming for Trump Tough choice for vulnerable GOP senators: Embrace or reject Trump The Trail 2016: Donald and the Supremes MORE (R-Okla.), Lamar AlexanderLamar AlexanderMcConnell bashes Reid’s ‘inappropriate’ rhetoric Senate backs equal pay for female soccer players Overnight Healthcare: Momentum on mental health? | Zika bills head to conference | Only 10 ObamaCare co-ops left MORE (R-Tenn.), Angus KingAngus KingSenators to Obama: Make 'timely' call on Afghan troops levels Lawmakers push to elevate Cyber Command in Senate defense bill House, Senate at odds on new authority for cyber war unit MORE (I-Maine) and Tom CarperTom CarperFinancial industry spars with retailers over data breach bill Week ahead: Cyber Command in the spotlight Lawsuit exposes M cybertheft through banking software MORE (D-Del.). It requires all newly issued student loans be set to the Treasury 10-year borrowing rate plus 1.85 percent for undergraduate loans. The cap on interest rates for consolidated loans would be 8.25 percent, but because of negotiations, that cap is likely to be lower.
“The legislation has been presented to me,” Reid said. “It isn’t everything that I want, but it’s a work of a number of Democratic and Republican senators working long hours. We have to get this done as soon as possible, and of course, we’ve made it retroactive.”
Reid said the Senate would at least take the bill up before leaving for the August recess. He also said he hoped student loan bills from other senators would get votes at the same time.