Congressional gridlock creates doubling of student loan rates - WRCBtv.com | Chattanooga News, Weather & Sports

Congressional gridlock creates doubling of student loan rates

Posted: Updated:

WASHINGTON (NBC News) -- Federal student loan rates are set to double on July 1st.

Lawmakers have known about the deadline for a year.  

But another one of those paralyzing deadlocks in the U.S. Senate is preventing a resolution.

There are not enough votes on either side in the U.S. Senate to fix this by Monday, so senators gave up and went home for the holiday.

Meanwhile, some college students marched to the Capitol with two days 'til the deadline

Federal student loans will go from 3.4 percent to 6.8 Monday

It's gonna be a lot harder for me to pay and it's gonna be impossible to pay it for a lot of people I know, said college student Jim Fellinger.

House republican leader Eric Cantor reminded students that the house approved lower rates in May.
"Students of this country have a right to quality education and they shouldn't be burdened by ever spiraling interest rates on their student loan," Cantor said.
 
But the republican plan has adjustable rates.  

Democrats today called that worse than nothing.

"A bill that will  put kids into a variable rate system that we know over time will be higher than 6.8%, said democratic Congressman Joe Courtney of Connecticut.    

When President Obama warned of the deadline in may he called for a fixed rate so, he said,  families could make long term plans.
That costs a bit more, say senate democrats, but it's worth more they say than overly beefing up the u-s border

Some of those who have not wanted to spend 4.6 billion on the future for students were willing to spend 40 billion on a fence, " said democratic senator Debbie Stabenow of Michigan.  

 It's not just rates that are the problem.   College costs are rising so fast students need bigger loans
"If you over borrow whether your interest rates are 4% or 7% you're still going to encounter difficulties, jack Remondi of Sallie Mae said.   

But lower rates help and on Monday they'll be twice as high as today

Democrats in the senate say if they approve lower rates in july or later, they can make them retroactive, but so far there's no sign of a deal on the issue.

  • NewsMore>>

  • Israel pounds Gaza as it searches for soldier

    Israel pounds Gaza as it searches for soldier

    Saturday, August 2 2014 12:37 AM EDT2014-08-02 04:37:15 GMT
    A three-day cease-fire in the Gaza Strip has gone into effect following heavy Israel-Hamas fighting.More
    Israel launched dozens of airstrikes early Saturday in the southern Gaza Strip as part of a large-scale search for a soldier Israel suspects was captured by Hamas fighters.More
  • What to expect from CFC's NPSL Title Match opponent the NY Red Bulls U23

    What to expect from CFC's NPSL Title Match opponent the NY Red Bulls U23

    Saturday, August 2 2014 12:22 AM EDT2014-08-02 04:22:54 GMT
    Chattanooga FC has proved they're not like most NPSL teams. They're the only team to make three national title games. They're the only team that pushes the boundaries when it comes to attendance, in fact they hold the single game league record but they'll hit the field Saturday night, one win away from the team's first national title as an underdog. More
    Chattanooga FC has proved they're not like most NPSL teams. They're the only team to make three national title games. They're the only team that pushes the boundaries when it comes to attendance, in fact they hold the single game league record but they'll hit the field Saturday night, one win away from the team's first national title as an underdog. More
  • CPD hires new communications coordinator after internal job posting

    CPD hires new communications coordinator after internal job posting

    Friday, August 1 2014 6:40 PM EDT2014-08-01 22:40:36 GMT
    It took just four days and an internal-only posting for the City of Chattanooga to find its new communications coordinator for the Chattanooga Police Department. Mayor Andy Berke's former administrative assistant was selected for the job.More
    It took just four days and an internal-only posting for the City of Chattanooga to find its new communications coordinator for the Chattanooga Police Department. Mayor Andy Berke's former administrative assistant was selected for the job.More
Powered by WorldNow
Can't find what you're looking for?

WRCB-TV
900 Whitehall Road
Chattanooga, TN 37405
(423) 267-5412

WRCB Jobs EEO | FCC Public Files

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WRCB. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.