House OKs Bill Slashing Student Loan Rates

(AP)  The House overwhelmingly approved a bill Wednesday that would cut the interest rate on many student loans in half.

The legislation would lower the rate from 6.8 percent to 3.4 percent in stages over five years for need-based loans.

The vote was 356-71.

The proposal would cost nearly $6 billion and affect nearly 5.5 million students who get the subsidized loans each year.

In passing the bill, Democrats were making good on a campaign pledge, though the measure was scaled back. Initially, the Democrats didn't say it would be limited to need-based, or subsidized student loans. On Wednesday, they conceded they would have to return to the issue to make college more affordable for more people.

The Democrats pushed the interest rate legislation through without amendments, eager to check off one more accomplishment in their "100-hours" list of early legislative goals.

The Bush administration opposes the bill, and Senate Democrats plan to bring up a more comprehensive measure that could complicate prospects for final passage.

The House version aims to reduce the bill's $6 billion cost by reducing the government's guaranteed return to lenders who make student loans, cutting back the amount the government pays for defaulted loans and requiring banks to pay more in fees.

[agnim]

"I think Bush and company just want Americans to be uneducated and ignorant.

Posted by getcentered at 09:26 PM : Jan 17, 2007"
That is more than just a 'thought'.

Educated people will find creative solutions to our problems, and so prevent much of the need for a massive military; but the warmongers can't have that. They need their ignorant American sheep to fill up their arm forces and go fight life and limb-wasting wars.

Also, keeping Americans dumb and ignorant is a sure way to make them susceptible to the kind of scare tactics that provides an easy path to power for the vile and power-hungry among us.

[randalds]

Can anyone explain to me the reason Bush and the Fascist are against this? It can't be that the Poor RICH Lenders can't afford it, that's just plain stupid. It can't be that the Students who recieve the benefits aren't American's and do not need the help, that's obvious. So what is it all you Swastika Huggers out there?
Posted by skyk at 07:16 AM : Jan 18, 2007

They don't want any more members of their "class". They're quite happy with the Biffs, Skippys, and Tiffanys that they have. This is a class war, make no mistake about that. They've started it and their goal is a two class America, the rich and those that serve them.

[shamrocknit]

I would like to say that I am glad to see that the new group in the House is already making great effective decisions, but again, it does not help everyone. I would like to see public school free college education. I went to a state school in Pennsylvania for Business Education, I do not have a job, and I am forced to pay back $60,000 in debt back to loan companies subbing at local school districts. Fortunately, the one loan is the Stafford and I can claim economic hardship for a year, until I hopefully get a job, but I%u2019m forced to pay $450 a month for the private loan, not to mention the other debt I have. Live the American dream with tons of debt right out of college! A college education is needed for anyone to be successful, yet you come out of school with debt up to your eyeballs and you can not even come out with a fresh start. The job market is terrible, yet we have loan and oil companies making huge amounts of money on us?!?! Something is not right here! Education should be free and universities should not be making profits off of us!

[aklutenk]

What I don't understand is why college tuition keeps raising at exponential rates when they haven't raised the amount of money undergraduate students can utilize in Stafford Loans. Twenty-five years ago the $2500 for a freshman would cover books and tuition... now it can barely cover a meal plan.

Furthermore, why do some universities allow students access to Perkins Loans and others do not?

[fascistusa]

YAY!!!

If only there were *&&*ing JOBS TO PAY FOR THOSE LOANS!!!!!

CAREERS. CAREERS. CAREERS. Remember those?

BEFORE the Great Corporatism/Fascism of the 2000's that KILLED THE MIDDLE CLASS?????

[pixelslinger]

Corresponding a lack of intellect with having religious faith is fairly idiotic, and a good reason why the Democrats are painted with the far left who believe that religion should be abolished in the first place. Nevermind that every Congressman and Senator in seat today is Christian (here's a big 'duh' for you), but a majority of them also have advanced degrees and years of public service behind them. Keep the Bible out of classrooms? Yes. Lump all people of faith into a big 'stupid' category? Sounds like you need to go back to school yourself.

I pressed this specific issue with Congressman Loebsack while I worked his campaign as over 90% of his student constituents needed financial aid. This was a big win for Dems - but it needs to be more comprehensive.

[getcentered]

Agnim:

I think Bush and company just want Americans to be uneducated and ignorant.

High on money, but low on cash.

[nyckate]

12 years of a GOP majority Congress and they couldn't get this done - less than one month Pelosi has it done - and has it voted on and got it through. This is what we're talking about - this is help for the working middle class.

Let's face it - for the last 6 years Bush and Congress have been playing with your heads with stupid issues like gay maarriage and stuff like that - and no help for the middle class who ALWAYS bear the burden.

[payasyougo]

Is this not a tax break for the pre-wealthy?

[agnim]

Maybe the "bush administration opposes the bill" because he doesn't want to many of our young people to find out just how terrible the education really is in this country.

Imagine we have a guy who was supposed to have attended one of our 'top universities' and he's as incompetent and mindless as those who didn't finish high school.