News From External Affairs: Senate Approves Stundet Loan Bill

One of the reasons I started this blog was to keep students as informed as possible. Below, see a press release from our External Affairs Chairwoman, Abby Whiddon. The release details an agreement the U.S. Senate has made in regards to student loans:

Washington, D.C.--The U.S. Senate has reached a bi-partisan agreement for a solution to student loan interest rate. The legislation approved Wednesday ties the loan’s interest rate to the market.

           Student Body President Christina Bonarrigo had told lawmakers that she hoped a long-term solution could be reached this year to give students financial stability and security, and is pleased with the bi-partisan solution.

            President Obama indicated he supported the bill’s passage early Wednesday, and in a later statement said, “This compromise is a major victory for our nation’s students.”

            The bill passed through the Senate by an 81-18 vote. It sets the 2014 fiscal year’s interest rate at 3.86 percent for undergraduate Stafford loans and 5.4 percent for graduate Stafford loans. To prevent unreasonable rates, a cap was placed at 8.25 for undergrads and 9.5 percent for graduates.

            The Senate’s version of the bill is likely to move to the House in the next week. Speaker Boehner said in a statement, “This bipartisan agreement is a victory for students, for parents and for our economy, and it is consistent with the House Republican bill passed in May.”