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 senators were already talking about changing the deal when they take up a rewrite of the Higher Education Act this fall. As a condition of his support, Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin won a Government Accountability Office report on the costs of colleges. That document was expected to guide an overhaul of the deal just negotiated.
The Congressional Budget Office estimated the bill as written would reduce the deficit by $715 million over the next decade. During that same time, federal loans would be a $1.4 trillion program.
Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott
- Teens struggle to squeeze into the job market
- 30 best cities for starting a business
- States explore free community college
- Top 10 cities for smallest income inequality gap
- Money mistakes to avoid in your 20s
- Why the rise of smart machines could...
- What seniors need to consider at tax time
- How will students pay for soaring debt? Tax...
- How will students pay for soaring debt?... 82
- Teens struggle to squeeze into the job... 24
- Why the rise of smart machines could... 20
- States explore free community college 19
- Which cities have the best income... 12
- Money mistakes to avoid in your 20s 8
- Americans spend how much on pets? 3
- The Mortgage Professor: Unmarried... 2