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