WASHINGTON, D.C. — U.S. Senator Joe Manchin along with four other Senators will be introducing new bipartisan legislation Thursday on Capitol Hill dealing with student loan interest rates.
The senators will be presenting a bipartisan compromise, the “Bipartisan Student Loan Certainty Act.
The legislation is meant to prevent student loan rates from doubling on July 1st and provide a permanent solution that would lower and fix interest rates for 100 percent of newly issued student-loans.
“This is a long-term fix that will lower rates for all students and will save students $30 billion over the next three years, making sure anyone who wants an education, can afford one,” said Manchin in a released statement.
The legislation would require, for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate.
Depending on the type of loan, that rate could change. For subsidized and unsubsidized undergraduate Stafford loans add 1.85 percent; for graduate Stafford loans add 3.4 percent; and add 4.4 percent for PLUS loans.
The interest rate would be fixed over the life of the loan and the cap on interest rates for consolidated loans would remain at 8.25 percent.
“This deal shows the American people that bipartisanship and common sense are alive in Washington,” said Manchin in his release. “We can find common ground to help our students and ensure the next generations of Americans have the same wonderful educational opportunities that we have always had.”
The other U.S. Senators presenting the legislation are Richard Burr (R-NC), Tom Coburn (R-OK), Lamar Alexander (R-TN) and Angus King (I-ME).
The Congressional Budget Office has determined this legislation would reduce the deficit by $1 billion over ten years.