EDMOND —
College students and their parents can now breath a little more freely as Congress voted Friday to extend the lower interest rate for federal student loans.
The U.S. House of Representatives passed the legislation in a 373-52 vote. All Democrats present voted in favor of the bill, 52 Republicans opposed its passage.
Congressman James Lankford, R-Edmond, voted in favor of the bill’s passage. Sen. Jim Inhofe, R-Oklahoma, voted yes and Sen. Tom Coburn, R-Oklahoma, did not record a vote.
The bill then moved onto the Senate, which approved it 74-19.
President Barack Obama has made preserving student loan rates a political point in his re-election bid. He has already indicated in a statement by White House press secretary Jay Carney that he will approve the legislation.
Without government action, loan interest rates would have doubled from 3.4 percent to 6.8 percent July 1, returning to the same rate as in 2007.
Although the vote came Friday afternoon in Washington, D.C., a closed-door agreement to preserve loan rates had been agreed to by congressional leaders on Thursday.
It carries with it a $6 billion price tag, but lawmakers agreed to fund it through pension changes.
Federal subsidized loans remain at the previous rate of 3.4 percent, but the bill only provides for it to remain so for one year and was actually packaged in with a larger bill to extend federal highway programs and the National Flood Insurance Program.
For students taking out loans for the upcoming fall and spring semesters, this means the interest rate will continue in the status quo on loans that do not generate interest while they are in school, called subsidized Stafford loans.
“It means I’ll have an opportunity to continue my education without getting into too much debt,” said Dylan Billings, a political science junior at the University of Central Oklahoma.
The unsubsidized Stafford loans, however, remain at a 6.8 percent interest rate, said Susan Prater, UCO director of financial aid. Those loans gather interest while students are going to school.
“There are a lot of students that have unsubsidized loans,” she said.
Although keeping subsidized loans at the same rate is good for students, Prater warns students to remain aware of the pitfalls of student loans.
“Students need to have financial awareness or have financial education,” said Prater — who noted that UCO does entrance and exit student debt consulting. “Student loans are going to be around for a while.”
Rather than taking heaps of cash from the government and amassing loan debt, Prater suggests students only take out what’s needed to pay for classes, books and other school-related costs.
And although Prater is thankful that the government was able to agree on interest rates this year, she said a more permanent fix is needed.
“Because time was of the essence, I think they were both able to come to an agreement,” she said.
Clint LaRue, Oklahoma Christian director of student financial services, said the current setup is just a patch.
“Everyone wants low interest rates and that’s a good reason,” he said. “But it’s really been made a political windstorm.”
U.S. Sen. Tom Coburn, R-Muskogee, drafted a bill on June 6 called the Comprehensive Student Loan Protection Act with Sen. Richard Burr, R-N.C., which would overhaul student loans to a fixed variable rate.
In an estimation from the Congressional Budget Office, Coburn’s bill could potentially save $52 billion during 10 years and would maintain interest rates for many borrowers.
Yet the bill has not gained traction since its introduction.
And while sitting in the UCO library, Billings, who estimates he’ll have as much as $50,000 in loan debt when he obtains his doctorate degree, agrees at least something else needs to be done.
“We’re not fostering a society where people feel they can afford college,” he said. “People think ‘can I afford to do this,’ rather than ‘should I do this?’”
Local News
House, Senate agree on student loan patch
- Local News
-
-
UPDATE: At least 51 killed by tornado in Moore
A large tornado ripped out sections of Moore Monday afternoon leaving a path of destruction of wrecked homes and businesses, according to the Oklahoma Office of Emergency Management.
-
UPDATE: Tornado damages 12 homes in Edmond
Twelve homes were damaged in the Edmond area by Sunday afternoon’s tornado. Major damage impacted three of the homes while the other eight homes had minor damage, said Matt Stillwell, director of the city’s emergency communications and management.
-
LIVE BLOG: Massive tornado hits south of OKC
A massive tornado touched down Monday afternoon in Moore, Okla., just south of Oklahoma City. Follow live coverage of the aftermath of the storm.
-
Mercy: Tornado damage delays Edmond opening
Damage from Sunday’s tornado will delay the grand opening of the Mercy Edmond I-35 campus by about six months, an administrator said. It had been scheduled for a July grand opening.
-
What you need to know about preparing for tornadoes
Tornado survivors and seasoned observers suggest people do two simple things to prepare for tornadoes: Know where to take shelter, and move quickly when the time comes.
-
Touch-a-Truck event draws hundreds
The 2013 Touch-A-Truck event took place Saturday at the University of Central Oklahoma campus. The event was sponsored by Edmond Electric, and all donations went to the HOPE Center.
-
5-21 Found Pets
This is a list of animals that have been found and are at the Edmond Animal Shelter, at Interstate 35 and Covell in the Cross Timbers Municipal Complex. Call the shelter at 216-7615 for more information.
-
City Council plans for budget increases
The Edmond City Council agreed Monday to a 6 percent budget increase for the next five fiscal years. The council met in a special budget workshop Monday morning. Fiscal Year 2014 begins July 1.
-
More than 120 from OC serve on summer missions
In the past year, Oklahoma Christian University emphasized “OC is Home” as a key theme to begin John deSteiguer’s tenure as president.
This summer, more than 120 students, staff and faculty are leaving the comforts of home to serve and spread the Gospel in around 20 countries, showing that “OC is Mission,” too.
“We are motivated and encouraged by the pure hearts for service that so many OC students have,” deSteiguer said. “We commend them, as well as our many faculty and staff who exemplify OC’s Christian mission to spread the good news and serve others.” -
FAI calling all pets for ‘Pets in the Park’
Animals now get their turn to connect with the activities at the Fine Arts Institute of Edmond with a new event, Pets in the Park, from 11 a.m. to 2 p.m. June 1 at Mitzi’s Park, 27 E. Edwards. Registration for the pet parade and art contest will begin at 10:30 a.m.
- More Local News Headlines
-
UPDATE: At least 51 killed by tornado in Moore
RAW: Moore, OK tornado touches down near school
Okla. tornado survivor finds dog buried alive under rubble
Robert Pattinson Moves Out
RAW: Russian dash cam catches car 20 feet in the air
Oklahoma tornado survivor: "Everything is gone"
Khloe Lashes Out at Kim Kardashian's Critics
Couple Argues As Woman's Lover Crawls Out Window
RAW: Brad Paisley Forgets Lyrics To His Own Song
Justin Bieber Gets Booed
RAW: TV Staff Take Cover From Tornado
New 'Anchorman 2' Trailer, Drake Joins List of Rumored Cameos
Eva Longoria's Wardrobe Malfunction
Heat Star Dwyane Wade Surprises Coral Gables Teen At Prom
Steak n' Shake waitress scores huge tip
Singer Miguel Accidentally Lands on Fan At Billboard Music Awards
Celebs Celebrate the Rise of the Side Butt
Grizzly bear gets up close and personal with camera
Justin Bieber Gets Booed After Winning at the Billboard Awards
Tornadoes, Storms Strike Midwest
Singer forgets lyrics, makes up words to National Anthem
