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Category: Higher Education

Federal Update

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Congress has just two weeks before the July 4th recess week to tackle several major legislative issues. This week, the House will try to pass a five-year farm bill that contains controversial dairy policies and cuts to food stamps. It will also revive the abortion debate over a bill to ban certain abortions. In the Senate, appropriators will decide allocation levels for their twelve FY14 spending bills, and the full Senate will look for a compromise on border security that could improve prospects for immigration reform legislation (S 744).

Both the House and Senate will also continue to debate the best way to deal with student loan interest rates and the rates for subsidized Stafford student loans is scheduled to increase from 3.4 percent to 6.8 percent on July 1st. There are several proposals out there but none that have the support necessary to get approval in both chambers.

CBO on Student Loan Interest Rate Change and Proposals

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Today, the Congressional Budget Office (CBO) released a report on the impacts and costs of the student loan interest rate going from 3.4 to 6.8 percent. The CBO analyzes the impact to Direct (subsidized and unsubsidized) and PLUS loans.  The report also broadly touches on the impacts to students and the nation if student loans have an adjustable interest rate.

A copy of the CBO report can be found here.

The CBO is a nonpartisan agency created to produce independent analyses of budgetary and economic issues to support the Congressional budget process.

The Office of Federal Relations is continuing to monitor this issue and will provide updates as available.

Student Loan Bills Fail in Senate

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This morning, the Senate took up both S 953, the Reed-Harkin-Reid-Murray two year extension of 3.4% interest rate on student loans and the Senate Republican alternative, S 1003, sponsored by Senators Tom Colburn and Lamar Alexander.  The Senate Republican bill would have tied student loan interest rates to the 10-year Treasury note rate plus 3 percentage-points.

The Chamber was technically voting to invoke cloture on motions to proceed to consideration on the measure. Both bills needed 60 votes in order to proceed to debate.  As expected, both bills of the competing measures failed to reach the 60-vote mark.

S 953 (Reed-Harkin-Reid) received a vote of 51-46.

S 1003 (Coburn-Alexander) received a vote of 40-57.

 

Today in Congress: Student Loan Bills

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The Senate is in at 9:00am and will hold three procedural votes on the farm bill and two rival bills to keep interest rates low for student loans. It’s not certain either can clear the 60-vote threshold in the Senate. The Republican-led House already has taken action on loans – and drawn a veto threat from Obama. Interest rates on new subsidized Stafford loans are set to double from 3.4 percent to 6.8 percent if Congress doesn’t act by July 1, but talks between Democrats and Republicans have largely broken down.

The House is also in at 9:00am, with votes expected between 11:00am and 1:00pm on the Homeland Security Appropriations Act. The White House has threatened a veto, stating Congress shouldn’t consider spending bills until the House and Senate agree on an overall budget framework.

Later this afternoon, Senator Frank Lautenberg’s (D-NJ) casket will arrive at the East Senate Steps of the Capitol. A Color Guard ceremony will be held, and then Lautenberg will lie in repose on the Lincoln catafalque in the well of the Senate. Senators and staffers will get a chance to pay their respects. Reporters will have access to the press gallery of the Senate Chamber, and members of the public will have an opportunity to pay respects from the gallery.

ED Now Accepting Applications for Fall Internships

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The Department of Education (ED) is currently accepting applications for fall internships for those interested in education policy research and analysis, intergovernmental relations and public affairs, work with social media while learning about the role Federal Government plays in education, or similar areas. Interns will develop a variety of other skills, including writing, researching, communication, and time-management skills, and will also participate in group intern events, such as brown-bag lunches with ED officials, movie nights, and local tours. And, you’ll get to spend fall in historic Washington, DC with all that the city and region have to offer!