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Senator Durbin Calls For Progress On Student Loan Impasse

Tue, 02 Jul 2013 16:51:06 CDT
By: Charlie Schlenker

Senator Durbin Calls For Progress On Student Loan Impasse U.S. Senator Dick Durbin says despite the deadlock between Republicans and Democrats over the student loan program, negotiations need to continue. During a visit to Illinois State University's Mennonite College of Nursing, Durbin said there are several roadblocks that have caused interest rates on new loans to double to more than six percent.

"First is will there be a cap or will we allow this rate to float with the market rate on 10 year Treasury notes. I think there should be a cap, a limit, on what students have to pay and their families. This is for the subsidized Stafford student loan."

Durbin also says he believes the government should not be making a lot of money off of students.

"Most people are surprised to learn that the 3.4% Stafford loan subsidized rate last year generated $50 billion in profit to the Treasury. Profit from whom? From the students and their families. That's not right."

He says the cost of a college education is already too high and student debt is growing faster even than credit card debt in the U.S. Durbin is calling for a return to bipartisan negotiations over the nation's student loan program.

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