Skip to main content

Kline to urge action on student loan rates during national address

  • Author:
  • Updated:
    Original:

Minnesota Republican Congressman John Kline will focus on the federal student loan rate that's expected to double July 1 during the weekly Republican national address Saturday.

According to the Star Tribune, Kline's office indicated he will urge President Barack Obama to press Senate Democrats to negotiate a deal that would stop the interest rate for new federally subsidized Stafford loans from increasing to 6.8 percent.

The House already passed Kline's bill that would tie interest rates to 10-year Treasury notes. Now, the Senate has a little more than a week to act before the increase goes into effect.

USA TODAY reports a bipartisan coalition of senators is working on a compromise to create a three-tier loan-rate system for undergraduate, graduate, and PLUS loans which would be tied to the interest rate on a 10-year Treasury note and would be locked at the initial rate for the life of the loan.

As the deadline looms, there have been several opinions on what the next move should be.

The L.A. Times editorial staff says "tying interest rates to the federal government's low cost of borrowing is the right way to go. The Senate should pass its own version of the president's proposal, then work out the differences with the House without delay."

USA TODAY's editorial board agrees that interest rates should be tied to market conditions, "rather than congressional whims," and suggest more money should be available in direct Pell grants.

Minnesota college graduates walk off campus with an average debt of $29,000, while the collective student debt in the U.S. amounts to $1 trillion.

Next Up

Screen Shot 2022-09-30 at 2.23.15 PM

Walz sends MN first responders to help with hurricane recovery in Florida

Eight members of the Minnesota All Hazards Incident Management Team will travel to Florida.

drought

It was the driest September in Twin Cities modern history

Less than a quarter inch of rain fell in September.

Jay James Olson

Sauk Rapids man pleads guilty to making, selling ghost guns

The 21-year-old would sell unserialized guns, silencers, auto-sears, and high-capacity magazines.

Pixabay - gray squirrel

Squirrel blamed for Friday power outage impacting over 5,000 homes

There's no telling when or where the squirrels will strike next.

Screen Shot 2022-09-30 at 8.11.55 AM

Seattle man federally indicted in massive Bloomington fentanyl bust

The case is believed to represent the largest fentanyl bust in the Midwest.

Screen Shot 2022-09-30 at 9.27.53 AM

Nicollet Diner to launch new, expanded home with a drag show

The new location will still feature the diner's classic offerings, as well as a new cabaret venue and cocktail lounge.

police tape, crime scene

Woman found dead at Minneapolis home was stabbed multiple times

LaTiffany Altanette Lessley was found dead in a north Minneapolis home Tuesday.

Screen Shot 2022-09-29 at 4.48.45 PM

Bloomington PD announce what's likely 'largest fentanyl bust in Midwest'

The case is under investigation by the U.S. Attorney's Office.

covid

Minnesota's COVID-19 update for the week ending Sept. 27

This week's report represents data collected Sept. 21-27.

Related

Kline sits at center of national student loan debate

As chairman of the House Education and the Workforce Committee, Rep. John Kline has challenged President Obama every turn. But it's his stance on Stafford Loans for college students, which could double on July 1, that has sparked a national debate. The Star Tribune looks at how this debate is reverberating across the Minnesota and the nation.

Democrats Peterson and Walz vote for GOP student loan interest rate plan

Minnesota Congressmen Collin Peterson and Tim Walz voted in favor of the $5.9 bill that would prevent the interest rate on federally-subsidized student loans from doubling this summer by cutting funds from part of President Obama's health care law. It now heads to the Democratic-controlled Senate where the plan is dead on arrival. Republican U.S. Rep. John Kline says the legislation isn't perfect, "but it will allow us an opportunity to continue working toward a long term solution."