Hatch: Student loan rates are going to double

WASHINGTON, D.C. – On Thursday, after Senate Democrats blocked common-sense bipartisan legislation that would stop student loan rates from doubling on July 1, Sen. Orrin Hatch, R-Utah, issued the following statement:

What happened today in the Senate is unacceptable, and because Senate Democrats wanted to play politics instead of actually find a solution, student loan rates are going to double on July 1. A bipartisan group of senators put together a reasonable compromise — similar to what President Obama has supported — to permanently lock in lower student loan rates, but for some inexplicable reason the Senate majority leader said ‘no.’ It’s time the president weigh in and get Senate Democrats to say ‘yes’ to our students who deserve a more affordable education.”

Sens. Joe Manchin, D-W.Va., Richard Burr, R-N.C., Tom Coburn, R-Okla., Lamar Alexander, R-Tenn., Angus King, I-Maine and Tom Carper, D-Del., introduced the Bipartisan Student Loan Certainty Act, a compromise bipartisan solution that would avert student loan interest rates from doubling on July 1 and provide a permanent solution that would lower and fix interest rates for 100 percent of newly issued student loans. The act requires that, for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate plus 1.85 percent for subsidized and unsubsidized undergraduate Stafford loans, plus 3.4 percent for graduate Stafford loans and 4.4 percent for PLUS loans. The interest rate would be fixed over the life of the loan and the cap on interest rates for consolidated loans would remain at 8.25 percent. The Congressional Budget Office has determined this legislation would reduce the deficit by $1 billion over ten years.

Submitted by: The Office of Sen. Orrin Hatch

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3 Comments

  • DoubleTap June 28, 2013 at 1:38 pm

    Mr. Hatch, is this your attempt to distract your constituency from the misguided vote you cast for the immigration bill yesterday? You, sir, have let the people of this great state of Utah down by your support of the ill conceived thing called immigration reform. Amnesty BEFORE border security is NOT what your constituency wanted. You sir, are what is the problem with Congress. You have been there too long! Do you NOT think that 30+ years of mind boggling financial disasters is enough? If you really cared about this state and country….you would resign the Senate position you hold.

  • Joe June 28, 2013 at 3:53 pm

    You should have retired long ago. You need to step your crusty butt out and let someone who wants to represent us take your place. From all of us in St George – your done!

  • Tom June 30, 2013 at 8:24 am

    My, My, My!! The Democrats are playing politics. They brought a bill out of committee and then voted against it. Where have I heard that before. Sounds two faced to me. I would say it is time for him with the $50 dollar haircut to retire, but I know he would probably be replaced by another tea…pledging allegiance to the renamed John Birch Society.
    Ed. ellipsis

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