Connect with us

Black Listed

Congress Levels Student Loans

Congress approved legislation Friday preserving jobs on transportation projects from coast to coast and avoiding interest rate increases on new loans to millions of college students, giving lawmakers campaign-season bragging rights on what may be their biggest economic achievement before the November elections.

The bill sent for President Barack Obama's signature enables just over $100 billion to be spent on highway, mass transit, and other transportation programs over the next two years, projects that would have expired Saturday without congressional action. It also ends a bare-knuckle political battle over student loans that raged since spring, a proxy fight over which party was best helping voters muddle through the economic downturn.

Under the bill, interest rates of 3.4 percent for subsidized Stafford loans for undergraduates will continue for another year, instead of doubling for new loans beginning on Sunday as scheduled by a law passed five years ago to save money.

Had the measure failed, interest rates would have mushroomed to 6.8 percent for 7.4 million students expected to get the loans over the coming year, adding an extra $1,000 to the average cost of each loan and antagonizing students — and their parents — four months from Election Day.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

[EBONY Throwback] Saying Farewell: Watching a President, and a Friend, Take a Bow (Video)

EBONY Exclusive

NBC News Details History of Black Democratic Voters Since 1976

News

Billionaire Robert F. Smith to Pay 2019 Morehouse Grads' Student Debt Billionaire Robert F. Smith to Pay 2019 Morehouse Grads' Student Debt

Billionaire Robert F. Smith to Pay 2019 Morehouse Grads’ Student Debt

News

Stephen Moore Attempts to Clarify His Racist Obama Joke Stephen Moore Attempts to Clarify His Racist Obama Joke

Stephen Moore Attempts to Clarify His Racist Obama Joke

News

Advertisement
Connect
Join EBONY.com