“Democrats need to finally allow the bipartisan student loan reform proposal to come to a vote this week, so we can pass it and ensure there’s one less Washington-created problem for young people to worry about in this economy,” McConnell said on the Senate floor. “Because it’s tough enough out there for them already. The Obama Economy has not been kind to the youth of our nation.”
The bipartisan deal would be a permanent solution and base loan rates on the 10-year Treasury note, plus 2.05 percent to cover administrative costs. The bill also caps undergraduate loan rates at 8.25 percent. The House passed a similar bill last month.
Sen. Bernie SandersBernie SandersWebb: The race to 270 Arizona and Georgia: Not swing states — yet The American electorate is pulling apart MORE (I-Vt.) said he’d oppose the bipartisan bill — which has the support of senior Democratic Sens. Dick DurbinDick DurbinGreat Lakes senators seek boost for maritime system Wikileaks: Durbin pushed unknown Warren for Obama bank regulator The Hill's 12:30 Report MORE (Ill.) and Tom HarkinTom HarkinGrassley challenger no stranger to defying odds Clinton ally stands between Sanders and chairmanship dream Do candidates care about our health or just how much it costs? MORE (Iowa).
“Our job is to improve the dismal situation in terms of college affordability and indebtedness … to make it better not to make it worse, which is exactly what this piece of legislation would do,” Sanders said on the Senate floor after McConnell's speech. “Our government is selling out the young people of our country.”
Some Democrats, such as Sanders and Sens. Elizabeth WarrenElizabeth WarrenHelen Mirren gives advice for being a ‘nasty woman’ Warren slams GOP Sen. Burr as 'puppy on a leash' for backing Trump The Trail 2016: An important lesson in geography MORE (D-Mass.) and Jack ReedJack ReedArmani, Batali among guests at White House state dinner Overnight Finance: Jobless claims near record low | Cops bust IRS phone scam in India | Republican demands Iran sanctions docs Senate Dems demand answers from Wells Fargo over treatment of military MORE (D-R.I.) have argued that the bipartisan bill would harm future college students because, if market based interest rates increase — as expected over the next few years — student loans could exceed 6.8 percent.
Sanders said he would introduce an amendment that would sunset the bill after two years — before the interest rates are expected to exceed 6 percent.