The Herald Bulletin

Morning Update

Breaking News

July 24, 2013

Senate set to finish work on student loan deal

WASHINGTON — Borrowing for tuition, housing and books would be less expensive for college students and their parents this fall but the costs would start climbing almost immediately under a deal the Senate was poised to pass Wednesday.

The bipartisan proposal lawmakers were considering would link interest rates on federal student loans to the financial markets, providing lower interest rates right away but higher ones if the economy improves as expected. Senate aides said lawmakers were on track to finish work by late Wednesday afternoon.

Liberal Democrats labeled the White House-backed proposal a bait-and-switch measure that would lure in new borrowers with low rates now but would cost future students.

"The bill before us today offers students and families lower student loan interest rates in the near-term but we can fully expect higher student loan interest rates in the years to come," said Sen. Tammy Baldwin, D-Wis. "Why on earth would we want to expose our students to higher rates?"

The White House and its allies said the new loan structure would offer lower rates to 11 million borrowers right away and save the average undergraduate $1,500 in interest charges. Democratic leaders expected widespread defections from within their ranks but expected Republican support would help them win passage.

But there was no denying the new structure could cost future students if the economy improves as expected and interest rates climb. The White House's allies instead suggested the new formula is better than the status quo.

"At the end of the day, we have a very clear choice to make: stick with the 6.8 percent interest rate or lower it," said Sen. Dick Durbin, the Illinois Democrat who oversaw the negotiations.

Durbin said senators' concerns could be part of talks this fall on the Higher Education Act. But for students right now, he said, students needed the compromise to pass to dodge higher costs.

Text Only
Breaking News
  • news_skoreaferry.jpg Fears rise for missing in South Korea ferry sinking

    Fears rose Thursday for the fate of 289 passengers still missing more than 24 hours after their ferry flipped onto its side and filled with water off the southern coast of South Korea.

    April 16, 2014 1 Photo

  • news_ukraineprotests.jpg Pro-Russian gunmen make inroads in eastern Ukraine

    The well-armed, Moscow-backed insurgency sowing chaos in eastern Ukraine scored a new victory Wednesday, seizing armored vehicles and weapons from underequipped government forces, then rolling through two cities to a hero’s welcome.

    April 16, 2014 1 Photo

  • news_detroitsunset.jpg Detroit still needs $350M from state lawmakers

    Pressure was building Wednesday for Michigan lawmakers to commit $350 million to Detroit pensions, a day after the city reached tentative agreements with pension funds and a retiree group to reduce payouts.

    April 16, 2014 1 Photo

  • NWS - HB0417 - Sperry Funeral - 10.jpg Family, friends bid farewell to Jesse Sperry

    The fussing of 10-day-old Autumn Marie Sperry seemed to coincide with the beginning of the funeral service for her father, Jesse Sperry, whose body rested just a few feet away. More than 200 friends and family members gathered at Edgewood Baptist Church this afternoon to pay their respects to Jesse, who was killed April 6 in a traffic accident on Indiana 32.

    April 16, 2014 2 Photos

  • news_malaysiaplanesearch.jpg Sub makes second dive to search for Malaysian plane

    As a robotic submarine dived into the ocean to look for lost Flight 370, angry Chinese relatives stormed out of a teleconference meeting Wednesday to protest the Malaysian government for not addressing them in person.

    April 16, 2014 1 Photo

  • 3 APTOPIX Police Conver_Unde-1.jpg Feds: Boston bombing suspect not entitled to '11 murder file

    Federal prosecutors have told a judge they have no evidence that Boston Marathon bombing suspect Dzhokhar Tsarnaev knew about his brother's alleged role in a triple slaying in Waltham two years before the bombings.

    April 16, 2014 1 Photo

  • Nebraska toddler gets stuck inside claw machine

    Authorities say a toddler has been reunited with his mother after employees found him playing inside a claw crane machine at a Nebraska bowling alley.

    April 16, 2014

  • Boston police safely blow up suspicious backpacks

    Survivors, first responders and relatives of those killed in the Boston Marathon bombing marked the anniversary Tuesday with tributes that combined sorrow over the loss of innocent victims with pride over the city's resilience in the face of a terror attack.

    April 16, 2014

  • 292 missing, 4 dead in South Korea ferry disaster

    A ferry carrying 459 people, mostly high school students on an overnight trip to a tourist island, sank off South Korea's southern coast on Wednesday, leaving nearly 300 people missing despite a frantic, hours-long rescue by dozens of ships and helicopters. At least four people were confirmed dead and 55 injured.

    April 16, 2014

  • Leaders await decision on Indiana Plan expansion

    Two of the state's top Republican lawmakers said Tuesday that they would like to see the federal government sign off on an expansion of Medicaid through the state's health care plan for low-income residents, but they added that they have little idea how soon that could happen.

    April 16, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
Disbanding Muslim Surveillance Draws Praise Hundreds Missing After South Korean Ferry Sinks Passengers Abuzz After Plane Hits Swarm of Bees Boston Bomb Scare Defendant Appears in Court Pistorius Trial: Adjourned Until May 5 Diaz Gets Physical for New Comedy Raw: Ferry Sinks Off South Korean Coast Town, Victims Remember Texas Blast Freeze Leaves Florida Panhandle With Dead Trees At Boston Marathon, a Chance to Finally Finish Are School Dress Codes Too Strict? Raw: Fatal Ferry Boat Accident Suspicious Bags Found Near Marathon Finish Line Boston Marks the 1st Anniversary of Bombing NYPD Ends Muslim Surveillance Program 8-year-old Boy Gets His Wish: Fly Like Iron Man Sex Offenders Arrested in Slayings of CA Women India's Transgenders Celebrate Historic Ruling Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

How often would you ride an express bus to Indianapolis?

Every work day
Once or twice a week
Occasionally
I'll stick to driving my car, thank you
     View Results