Happy Fourth of July from the Office of Federal Relations.
Congress will be back on Monday from the District Work Period. Federal Relations will have a full report on what’s to come before the August Recess next week.
News and updates
Federally Subsidized Student Loan Rates Double Today
Congress adjourned last week for the 4th of July recess without passing legislation to halt the rise of student loan interest rates. That means that today the interest rate on Federally Subsidized student loans doubles from 3.4% to 6.8%. The rate hike is expected to affect 7 million students and will add an average of $3,000 on a $23,000 loan over the 10-year repayment period.
Senate Passes Immigration Reform
A short time ago, the US Senate approved sweeping immigration legislation. By a vote of 68 to 32, the Senate approved and concluded a month-long debate of a measure which was nearly 1,200 pages. To note the historic significance of the vote, Vice President Biden presided over the vote and Senators voted from their desks, which is a rare procedural move to mark historic votes and special occasions. The Senate used the same formal procedure of voting from their desks to pass ObamaCare three years ago.
Senate may Vote on Immigration Bill Today
Although the vote is officially scheduled for tomorrow afternoon, some reports are claiming that Senators may try to move the legislation for a vote around 4pm today. Senator Reid announced that Senators will make the vote from their desks – a method usually reserved for votes on historic legislation.
Republicans in the House of Representatives have already indicated that they will not take up the Senate bill.
Student Loan Deal Unlikely
Today, Senate Leader Harry Reid admitted that a deal to keep student loan interest rates from doubling to 6.8% before July 1st is unlikely. Several Senators continue to work to produce a last minute deal, including Senator Joe Manchin (D-WV) who has been working with Senator Angus King (I-ME), an independent who caucuses with Democrats, and several Republicans, for a student loan compromise.
It is unclear how much support Manchin-King proposal would have if brought to a vote.
Some Senators are now hinting of the possibility of a retroactive fix after the House and Senate come back from the July 4th Recess. However, it is unclear and unlikely that Congress will have the political will to do so.