By Shelby Bremer, Credit.com
More than 7 million students will see interest rates on their student loans double from 3.4 to 6.8 percent on Monday, after the failure of Congress to pass legislation to prevent the automatic rate hike that they successfully deferred for a year last summer.
Despite the introduction of several bills to serve as a solution, lawmakers will leave for the week-long July 4 recess without implementing any of them, letting the July 1 deadline pass. Any students taking or renewing federal subsidized Stafford loans after that deadline can expect to pay, for example, an additional $3,000 on a $23,000 loan paid off over 10 years.
House Republicans passed the Smarter Solutions for Students Act on May 23, a measure that ties student loan interest rates to market-based rates. This plan would have reset student loan rates every year depending on the rate on U.S. Treasuries, which Senate Democrats claimed was too uncertain and with a cap of 8.5 percent, could push rates even higher than 6.8 percent.
By Abby D. Phillip
“He’s a traitor,” the highest ranking Republican in the House of Representatives said in an extensive interview with ABC News’ George Stephanopoulos. “The disclosure of this information puts Americans at risk. It shows our adversaries what our capabilities are. And it’s a giant violation of the law.”
Boehner endorsed President Obama’s characterization of two programs, which allow the NSA to gather information about phone calls made in the U.S. as well as information on foreign suspects collected from major internet companies, as critical to the government’s ability to fight terrorism. He said that there are “clear safeguards” built into the programs to protect Americans.
“The president outlined last week that these were important national security programs to help keep Americans safe, and give us tools to fight the terrorist threat that we face,” Boehner said. “The president also outlined that there are appropriate safeguards in place to make sure that there’s no snooping, if you will, on Americans here at home.”
Snowden, a 29-year-old contractor with the National Security Agency, admitted that he was the source of several leaks of top secret NSA documents to the British paper, The Guardian, and the Washington Post.
The House bipartisan “Gang of Eight” has reached an agreement in principle on immigration overhaul, including major points such as a pathway to citizenship, border security, health care and guest workers, a member of the group told ABC News tonight.
The lower chamber now expects to work out details next week before taking the Memorial Day break and introducing the bill June 4.
Over hoagie sandwiches, a two-hour meeting of a bipartisan group of congressmen nearly fell apart today over who would pay for immigrant health care, the House “Gang” member said.
Labrador, described as the most influential Republican in the House “Gang of Eight” because he represents Majority Leader Eric Cantor’s interests, finally agreed when language proposed by Democrats ensured that taxpayer money would not pay for immigrant health care.
Although not a member of the “Gang of Eight,” Wisconsin congressman and former vice presidential contender Paul Ryan was instrumental in bringing the Republicans along in the agreement.
The House bipartisan group that seemed to have stalled earlier today announced it is finally moving forward on its own version of immigration overhaul.