Congress addresses extension of current student loan rates

Posted at 6:00 PM, Jun 26, 2012
and last updated 2012-06-26 18:00:25-04

WASHINGTON, D.C.(WTVR) – Republican Sen. Mitch McConnell, Minority Leader, released a statement that indicates it is very possible the current student loan rates could be extended another year.

On Capitol Hill, the House and Senate have until this Saturday to fund transportation projects for another year, and to renew low student loan rates. A dispute over how to pay for those low rates is keeping the two sides apart.

If Congress doesn’t act by July 1st, the current low rate of 3.4 percent will double to 6.8 percent for 7 million new borrowers, costing them an average of $1,000 extra over the life of the loan.

Democrats and Republicans have been feuding over how to find the $6 billion needed to keep the rates low for one more year. Each blames the other side for dragging it out.

McConnell released the following statement.

“I think as we all know we’re moving toward completion this week of both the extension of student loan rates at the current level for another year. The president’s been largely uninvolved in that, but Senator Reid and I have an understanding we think will be acceptable to the House,” said McConnell.

“That may or may not be coupled with the highway proposal over in the House. That, to my knowledge, is not yet resolved as to whether that will be some kind of extension or a full, multi-year bill. But those two could end up together. Both need to be dealt with this week.”