WASHINGTON – Chautauqua County’s representative in congress says the U.S. Senate needs to act soon on a student loan interest rates, otherwise it will be too late for those who will be going to college starting next month.
During a recent media conference call, Tom Reed (R-Corning) said that the Senate has reached a compromise agreement on a new bill dealing with student loan interest rates but it has yet to act on the measure. Reed says the Senate returns to session this week, and the student loan measure should be among the top items they deal with immediately.
Reed added that the House has already approved a similar measure, which would return rates to 3.4 percent. They doubled to 6.8 percent at the start of this month because the Senate was unable to finalize its version of the bill.
The House was able to approve its version of the bill, which would allow rates to fluctuate, based on certain variables. However, the Senate has said it would prefer a fixed rate that can not be adjusted. President Obama agrees and during the Spring, he threatened to veto the House version, saying it creates uncertainty for college students who rely on loans to pay for their education.