Senator Manchin Introduces Act To Fight Student Loan Rate Increase
Written by Your 5News Team
Last updated on June 27, 2013 @ 7:16PM
Created on June 27, 2013 @ 5:55PM
If lawmakers don't act in a hurry the interest rate on student loans is set to skyrocket.
On Thursday U.S. Senator Joe Manchin, along with other Democratic and Republican Senators, introduced a plan to keep that from happening.
As it stands student loan interest rates are set to double from 3.4 percent to 6.8 July 1. That comes at a time when loans continue to climb and when many are wondering if a college education is even worth it anymore.
The fix introduced by Senator Manchin, called the Student Loan Certainty Act, represents a permanent solution. The Bipartisan Act would lower and fix interest rates for 100 percent of newly issued student-loans to the U.S. Treasury 10-year borrowing rate.
Nathan Ross, a Morgantown resident, told 5 News he graduated last year and racked up about $22-thousand in student loan debt. He said he pays about $300 a month and couldn't imagine paying anything more.
Ross said he's behind anything that stops those rates from increasing.
"I'm doing okay," he said. "I have a used car, nothing fancy. I live in a mobile home. That $300 puts me in a little bit of a strain."
Manchin also released a statement about the Student Loan Certainty Act, which he said. “Our bill is the only bipartisan, permanent fix that lowers interest rates for all students, especially the poorest, while also putting in place a consolidation cap that ensures student loan interest rates never become unaffordable. We’ve had a year to fix this problem and I refuse to kick the can down the road again. It’s time Congress stops playing politics with our students’ future and passes a commonsense long-term fix.”
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