Issue Spotlight: Student Loans
On July 1, 2012, the interest rates on subsidized Stafford student loans are set to double from 3.4% to 6.8%, affecting over 7.4 million students, according to the Department of Education.
The Senate will take up the Stop Student Loan Interest Rate Hike Act (S 2343) from Sen. Harry Reid [D, NV] this week. According to POPVOX's Hill sources, this bill (number seven on POPVOX last week) extends the lower 3.4 percent interest rate on federally subsidized student loans for another year, and pays for it with a tax increase on high-income earners. The Senate bill is different from a House-passed bill, the Interest Rate Reduction Act (HR 4628), that would pay for the extension by cutting a federal preventive healthcare fund."
We've compiled a list of bills related to the Stafford student loan interest rate and student loans more generally. We hope you'll weigh in on these bills on POPVOX and share with your friends and networks.
Issue Spotlight: Student Loans
Stafford interest rates
- HR 4628 The Interest Rate Reduction Act "provides a one-year extension of the 3.4 percent subsidized Stafford Loan interest rate paid for by rolling back wasteful government spending," according to the bill sponsor. (Passed by the House on Friday; now goes to the Senate for consideration.)
- S 2343 The Stop the Student Loan Interest Rate Hike Act extends student loan interest rates for undergraduate Federal Direct Stafford Loans for one year, paid for by closing a tax loophole, according to the bill sponsors. (Just introduced.)
- HR 4816 The Stop the Rate Hike Act extends student loan interest rates for undergraduate Federal Direct Stafford Loans for one year, "paid for by ending unwarranted tax subsidies to big oil and gas companies," according to the bill sponsor. (Just introduced.)
- S 2366 The Interest Rate Reduction Act extends student loan interest rates for undergraduate Federal Direct Stafford Loans, "paid for with money from the health care law", according to the bill sponsor. (Just introduced.)
- HR 3826 HR 3826 (and S 2051) extends the reduced interest rate for Federal Direct Stafford Loans.
Other student loan bills
- HR 5129 HR 5129 amends the tax code to exclude from gross income amounts paid by an employer on an employee’s student loans.
- S 2280 Know Before you Owe Private Student Loan Act requires certain creditors to obtain certifications from institutions of higher education.
- HR 4170 Student Loan Forgiveness Act increases purchasing power, strengthens economic recovery, and restores fairness in financing higher education in the United States through student loan forgiveness, caps on interest rates on Federal student loans, and refinancing opportunities for private borrowers.
- HR 3624 Student Loan Default Prevention Act authorizes the Secretary of Education to enter into voluntary, flexible agreements with certain guaranty agencies to provide delinquency prevention and default aversion services for borrowers and potential borrowers of Federal Direct Loans.
- HR 4286 Student Loan Grace Period Extension Act restores and extends the grace period before repayment begins on Federal Direct Stafford loans and Federal Direct Unsubsidized Stafford Loans.
- S 1748 Christopher’s Law (and HR 3240) amends the Truth in Lending Act and the Higher Education Act of 1965 to require additional disclosures and protections for students and cosigners with respect to student loans.
- S 1068 Student Loan Simplification and Opportunity Act (and HR 2732) provides for temporary student loan debt conversion authority.
- HRes 365 HRes 365 expresses the sense of the House of Representatives that Congress should cut the United States’ true debt burden by reducing home mortgage balances, forgiving student loans, and bringing down overall personal debt.
- HR 2028 Private Student Loan Bankruptcy Fairness Act modifies the dischargeability of debts for certain educational payments and loans.
- S 1139 Servicemember Student Loan Interest Relief Act provides that interest shall not accrue on Federal Direct Loans for members of the Armed Forces on active duty regardless of the date of disbursement.
- S 975 Physical Therapist Student Loan Repayment Eligibility Act (and HR 1426) amends the Public Health Service Act to provide for the participation of physical therapists in the National Health Service Corps Loan Repayment Program.
- S 518 Veterinary Medicine Loan Repayment Program Enhancement Act provides for an exclusion for assistance provided to participants in certain veterinary student loan repayment or forgiveness programs.
- HR 953 Make College Affordable Act makes higher education more affordable by providing a full tax deduction for higher education expenses and interest on student loans.
- S 48 Pharmacist Student Loan Repayment Eligibility Act amends the Public Health Service Act to provide for the participation of pharmacists in National Health Services Corps programs.
Please keep in mind that highlighting a bill doesn't imply a POPVOX endorsement in any way. Rather, we're simply trying to offer one more way to stay informed of an overwhelmingly complex legislative system.
