Ms. magazine  -- more than a magazine a movement

SIGN UP FOR MS. DIGEST, JOBS, NEWS AND ALERTS

FEMINIST WIRE NEWSBRIEFS

ABOUT
SEE CURRENT ISSUE
SHOP MS. STORE
MS. IN THE CLASSROOM
FEMINIST DAILY WIRE
FEMINIST RESOURCES
PRESS
JOBS AT MS.
READ BACK ISSUES
CONTACT
RSS (XML)
 
feminist wire | daily newsbriefs

July-25-13

Senate Passes Student Loan Reform Bill

On Wednesday, the Senate passed legislation to lower interest rates on student loans 81-18. If the bill is passed in the House, it will reach President Obama, who has expressed his support of the legislation and urged Congress to also tackle the rising cost of tuition and the existing $1 trillion in student debt.

The bill will retroactively lower interests rates as of July 1, counteracting the earlier doubling of student loan interest rates . As of now, the undergraduate Stafford rate will be 3.86 percent, while the graduate Stafford rate will be 5.41 percent. PLUS loans, which go to parents and graduate students, will be 6.41 percent for the 2013-2014 school year. The legislation will also tie interest rates to market rates and the 10-year Treasury note and cap the interest rates at 8.25 percent for undergraduate loans, 9.5 percent for graduate loans, and 10.5 percent for PLUS loans. These caps are all higher than the current rates.

Although proponents of the bill claim it is a long term solution, opponents have criticized it for likely shouldering future students with higher rates. Senator Elizabeth Warren, one of the 16 Democratic Senators who voted against the bill, says that the bill "asks tomorrow's students to pay more in order to finance lower rates today." She proposed an amendment with Senator Jack Reed (D-RI) to cap interest rates at current rates, but the amendment failed. Another amendment proposed by Senator Bernard Sanders (I-VT) to extend the new rates for two years also failed.

Media Resources: Sources: USA Today 7/24/13; Politico 7/24/13; Washington Post 7/24/13; Time 7/1/13; Bloomberg 7/24/13


© Feminist Majority Foundation, publisher of Ms. magazine

If you liked this story, consider making a tax-deductible donation to support Ms. magazine.

 

 

Send to a Friend
Their
Your
Comments
(optional)


More Feminist News

10/24/2014 Thousands of Women in Iran Protest Acid Attacks in Wake of Religious Law - On Wednesday, thousands of Iranians in the historic city of Isfahan gathered to protest recent acid attacks on women. . . .
 
10/24/2014 Potential Ballot Measure in DC Would Raise Minimum Wage to $15 - Low-wage workers in Washington, DC might see a significant increase in their pay, thanks to national labor rights group Restaurant Opportunities Center United (ROC). This month, the DC Board of Elections approved language submitted by a local chapter of ROC to raise the minimum wage in the District to $15/hour by 2019. . . .
 
10/23/2014 All of Tennessee's Major Newspapers Have Urged Voters to Reject Anti-Abortion Amendment 1 - All four of Tennessee's major papers have spoken out to oppose Amendment 1, a dangerous anti-abortion measure that will be decided by voters this fall. . . .