While there’s consensus that the student loan interest rates must not go up, members of Congress still haven’t come up with a deal. The U.S. House of Representatives has passed a bill that would keep student loan interest rates from doubling, but the Senate has problems with the financing vehicle.
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The House version would end a public health fund to avert the interest increase. But the Obama administration has vowed to veto such a bill. Now senators are grappling with how to pay to keep loan rates low. U.S. Rep. Judy Biggert (R-Hinsdale) was the sponsor of the House bill which is sitting in the Senate. “It was a partisan bill and so I think the leadership on both sides understands how important it is,” Biggert said. There could be a compromise from charging companies more to insure pensions, limiting tax deductions firms take for pension contributions, and limiting undergraduates’ federal loan subsidies to six years.
Interest rates would double July 1 if an agreement isn’t made.