May 15, 2013
New legislation (S. 953) introduced by Senators Jack Reed and Tom Harkin, along with Majority Leader Harry Reid and nine other senators, prevents interest rates on subsidized student loans from doubling as scheduled this July and pays for itself by closing tax loopholes. Unlike some recent proposals, this bill does not require students to bear much higher rates in the future to pay for low rates this fall. Instead, it’s a smart, short-term solution that keeps subsidized Stafford loans at the current fixed rate of 3.4% for two years. It pays for itself by closing unnecessary tax loopholes, two of which President Obama included in his most recent budget proposal.