As we have previously posted, the House is slated to consider HR 1911, the Smarter Solutions for Students Act on Thursday of this week or tomorrow. Yesterday, Education Secretary Duncan all but endorsed the legislation. While the House Rules Committee has yet to meet and determine how to proceed and what amendments will be made in order on the legislation for consideration by the full House, the White House has just announced in a Statement of Administrative Policy (SAP) that the President veto the legislation as it currently stands.
Category: Legislation
Secretary Duncan advocates long-term student interest rate solution
Secretary of Education, Arne Duncan, testified before the House Committee on Education and Workforce today. During the hearing, House Chairman Klein specifically asked Secretary Duncan to clarify the Administration’s position on the student loan issue. The Republican attempted to elicit an endorsement from Duncan of their bill, HR 1911, the Smarter Solutions for Students Act, which is founded largely on a market-based rate proposal included in the president’s fiscal 2014 budget request. While Duncan stopped short of explicit endorsement, he in his response Duncan dismissed the the Senate Democrats’ short-term fix (S 953) to simply extend the current 3.4 percent interest rate. With a strongly worded response, Duncan advocated for a long-term, budget-neutral fix for student loans rather than a short-term fix.
“We are very interested in a long-term solution,” Duncan said. “The idea of coming back every two years to try and fix something, with all the real challenges we face, and the fact that we can’t take this off the table… I just don’t understand it. I look forward to working with you and others to find some common ground.”
Duncan’s response to Klein here.
HR 1911 is expected to be considered by the full House this Thursday.
Senate focuses on Farm Bill and House focuses on Student Loans for the bulk of the week
The Senate and House continue to work though legislation that respective committees addressed last week.
The full Senate will consider the Farm Bill (S 954), which the Senate Agriculture Committee passed last week. The Farm Bill reauthorization , which would overhaul farm subsidies and food stamp programs, is expected to be considered by the Senate for the bulk of the floor action this week and again after the Memorial Day recess as well.
The full House is expected to consider and pass two bills passed by the House Education and Workforce Committee last week. First, HR 1949, the IPEDS Act is expected to pass on Wednesday of this week as a Suspension bill — or a bill that is considered a noncontroversial measure. Then, on Thursday, the House will consider HR 1911, the Smarter Solutions for Students Act. This legislation would set interest rates on federal student loans to the 10-year Treasury note rate plus 2.5 percentage points for undergraduate loans and plus 4.5 percentage points for graduate loans as of July 1. Rates would be capped at 8.5 percent and 10.5 percent, respectively, and the interest rates would be calculated yearly. Amendments are expected to be offered to the bill.
The Office of Federal Relations is monitoring both bills closely and will continue tracking their progress.
This Week in Congress
An overview of House and Senate Committee Hearings and Markups on the schedule this week.
TUESDAY, MAY 21st
House Appropriations
FISCAL 2014 APPROPRIATIONS: 302(B) ALLOCATIONS
May 21, 11 a.m., 2359 Rayburn Bldg
Full Committee Markup
House Education & the Workforce
FISCAL 2014 BUDGET: DEPARTMENT OF EDUCATION
May 21, 10 a.m., 2175 Rayburn Bldg
Full Committee Hearing
WEDNESDAY, MAY 22nd
Senate Appropriations
2014 APPROPRIATIONS: DEFENSE
May 22, 10 a.m., 192 Dirksen Bldg
Subcommittee Hearing
Senate Appropriations
2014 APPROPRIATIONS: INTERIOR AND ENVIRONMENT
May 22, 9:30 a.m., 124 Dirksen Bldg
Subcommittee Hearing
Senate Commerce, Science & Transportation
SECRETARY OF TRANSPORTATION NOMINATION
May 22, 2:30 p.m., 253 Russell Bldg
Full Committee Confirmation Hearing
House Judiciary
IMMIGRATION MODERNIZATION ACT
May 22, 2 p.m., 2141 Rayburn Bldg
Full Committee Hearing
THURSDAY, MAY 23rd
Senate Appropriations
2014 APPROPRIATIONS: AGRICULTURE, RURAL, FDA
May 23, 10 a.m., 124 Dirksen Bldg
Subcommittee Hearing
Senate Commerce, Science & Transportation
SECRETARY OF COMMERCE NOMINATION
May 23, 11 a.m., 253 Russell Bldg
Full Committee Confirmation Hearing
House Committee Moves on Student Loan Fix
Today, the House Education and the Workforce Committee marked up and two measures on to improve college costs and data transparency. The committee modestly amended and approved HR 1911, the Smarter Solutions for Students Act by a vote of 24-13, which ran largely along party lines. The amended HR 1911 would peg interest rates on all federal student loans, except Perkins loans, to the 10-year Treasury note rate plus 2.5 percentage points for undergraduate loans with a cap of 8.5 percent and plus 4.5 percentage points for graduate loans with a cap of 10.5 percent. Interest rates would be calculated and reset yearly.
The committee also marked up and approved HR 1949, the Improving Postsecondary Education Data Act for Students (IPEDS Act). The legislation would create a committee under the Department of Education to conduct a study on the factors students and families want, need, and already consider when choosing a higher education institution. This committee has a year to issue recommendations to assist congressional efforts to reauthorize the Higher Education Act.
The Office of Federal Relations is closely tracking this legislation and continues to work on this issue.
For more information on HR 1911, the Smarter Solutions for Students Act.
For more information on HR 1949, the IPEDS Act.