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Category: Student Aid

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.

Senate Moves to Add Student Loans Fix to Farm Bill

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The Senate continues to consider the Farm Bill this week. More than 200 amendments are pending consideration to the Farm Bill, including S953, known as the Reed, Harkin, Reid, Murray bill which would would increase taxes on multinational corporations to pay for a two-year extension for student loans at 3.4 percent. Senate Democratic leadership added the measure as an amendment last Friday.

Although it is not guaranteed to be considered as an amendment to the Farm Bill this week, the Senate will likely hold side-by-side votes on Reed’s plan and a House-passed Republican measure (HR1911) that the House passed last week which would peg the interest rates to the 10-year Treasury note. Each vote would require a 60-vote threshold for passage. It is expected that both measures would likely fail, thus increasing the pressure on the sides to develop a compromise.

Last Friday, Obama has blasted the House-passed bill, saying the legislation could saddle students with more debt than if rates are allowed to double to 6.8 percent on July 1, as scheduled.

The Office of Federal Relations will continue tracking this issue as it continues to develop.

House Passes HR 1911

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The House just approved the bill HR 1911, the Smarter Solutions for Students Act. The bill passed by a vote of 221 to 198 — largely by party lines: 8 Republicans voted against the bill while 4 Democrats supported it.

Before the vote, several higher education associations agreed to be listed as supporters of the legislation, including Association of American Universities (AAU), American Council on Education (ACE), Association of Public and Land-grant Universities (APLU), National Association of Independent Colleges and Universities (NAICU), and National Association of Student Financial Aid Administrators (NASFAA).

After the vote, the House adjourned for the week and will reconvene the first week in June.

The NASFAA issued this statement after the bill’s passage.

Veto threat to HR 1911, Smarter Solutions for Students Act

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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.

Click here for the SAP on HR 1911.