House OKs Lower Student Loan Rates (for Now)
President Obama expected to sign measure into law
By John Johnson, Newser Staff
Posted Jul 31, 2013 6:06 PM CDT
   (Shutterstock)

(Newser) – Congress has sent its student loan fix to President Obama for his expected signature, and it contains a mix of good news and bad news for college students. The good news is that freshmen this fall will pay an interest rate of 3.9%, down from the 6.8% that went into effect in July, reports CNN. The bad news is that the rate will be tied to the financial markets, meaning that as the economy improves—which college students would be rooting for in every other way—the rate will rise accordingly, reports AP.

Though it will be capped at 8.25% for regular students, 9.5% for graduate students, and 10.5% for parents, consumer advocates say those rates are too high. The measure cleared the House easily this evening by a vote of 392-31. Here's a sample of the differing reaction:

  • Pro: "This is a win for students and taxpayers," says Republican John Kline of the House Committee on Education and the Workforce. "It saves students and families money," says Democrat George Miller of the same panel.
  • Con: "The bottom line is that students will pay more under this bill than if Congress did nothing, and low rates will soon give way to rates that are even higher than the 6.8% rate that Congress is trying to avoid," says an official with the consumer group US PIRG.

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Showing 3 of 51 comments
Lefty_Libby
Aug 1, 2013 1:32 AM CDT
I see a page full of right wing media talking points. If anyone needs an education, it would be the ignorant, easily propagandized people commenting here. Harumph, Bill Gates dropped out, and look at him. Lots of successful business men never went to school. Who needs an education, blah, blah, blah. Then, if you switch to other news items where workers are fighting for better pay: Those people didn't get educated. They don't deserve any money, because they only went to high school. They should have gotten degrees in engineering. Which set of talking points do you want to mimic like baby parrots?
DougMasters
Aug 1, 2013 1:15 AM CDT
Typical govt... ignoring the real problem Our out of control for profit education issues, and the crazy high cost of education. But lets not address that, lets just address interest rates... A.) Do away with the wide spread for profit education system B.) Reduce the actual cost of education, and I mean greatly... at least half across the board Education, GOOOD education should be available to all within reason. Obviously it can't be free but it needs to be far cheaper. Cut education costs by at least half, and expand FREE education to those in oppressed and economically distraught neighborhoods and watch the tax base go sky high, the crime rate drop like mad crazy ( supplementally along with gun deaths ) and this nations productivity go through the roof.
Lefty_Libby
Aug 1, 2013 1:13 AM CDT
A mind is a terrible thing to waste. Public education through college and/or trade school based on merit now. Education rationing based on money is bad for our country. Who should we educate: A rich dummy or a poor genius? In the marketplace of intelligence, the only true currency is ability, not money.