Alexander Announces Agreement To Reduce Student Loan Rates For More Than 200,000 Tennessee Borrowers

Thursday, July 18, 2013

The senior Republican on the U.S. Senate education committee on Thursday announced an agreement had been reached by senators of both parties on a plan to lower interest rates for all students borrowing money for college this year.

Senator Lamar Alexander (R, Tn.) said, “Today’s bipartisan student loan agreement is terrific news for about 202,000 Tennessee borrowers who will be taking out nearly $1.8 billion to help pay for college costs next year.”

Elements of the agreement are as follows:

  • Rates on every student loan made after July 1 will be reduced from 6.8 and 7.9 percent rates that are currently fixed in the law.
  • All undergraduate loans will have the same rate, which this year is 3.86 percent, and will remain fixed for the life of the loan.
  • The plan is simpler because all undergraduate loans—which are two-thirds of all student loans—will have the same low rate.

Senator Alexander said, “This plan is fair to taxpayers and fair to students. It comes as close as possible to not costing taxpayers and not charging students more than the cost of borrowing the money and administering the program.

“It’s realistic because it’s market-based, which means it’s based on what it costs the government to borrow money.

“The rates are fixed for the life of the loan, which provides certainty to students and parents.

“Finally, the plan is a long-term solution that will end the annual political saga of members of Congress jockeying for position to solve the student loans problem.”

The Bipartisan Student Loan Certainty Act requires that, for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate (specifically, the yield on the 10-year note as determined by the last auction held before June of each year—not the changing daily rate).

The resulting interest rates for loans taken out this year, after July 1, would be 3.86% for all loans for undergraduate students—both subsidized and unsubsidized. Rates would be 5.41% on unsubsidized loans for graduate students, and 6.41% on PLUS loans for parents and graduate students.

These rates would apply retroactively to newly issued loans taken out after July 1.  The interest rate would be fixed over the life of the loan to provide borrowers with certainty to plan for the future.  Additionally, this bill protects against the threat of unforeseen circumstances by imposing a cap to ensure interest rates never exceed 8.25% for undergraduate students, 9.5% for graduate students, 10.5% for PLUS borrowers.  The Congressional Budget Office has determined this legislation would save taxpayers $715 million over ten years.

To learn more about the bill, click here.


Latest Hamilton County Jail Booking Report - And Mug Shots

Here is the latest jail booking report from Hamilton County: ANGLE, NIKIA MARIE 3125 BENNETT RD EAST RIDGE, 37421 23 Hamilton County THEFT OF PROPERTY ASHLEY, LAURA ANN 480 CEDAR STREET APT 11 DUNLAP, 37327 36 Red Bank POSSESSION OF DRUG PARAPHERNALIA BROGDON, KEVIN LEON 1504 JOHN ROSS ROAD EAST RIDGE, 37412 24 East Ridge FILING FALSE ... (click for more)

Fort Oglethorpe Arrest Report For Oct. 17-23

Here is the Fort Oglethorpe arrest report for Oct. 17-23: Jorge Zambrano Gonzalez, 37, of 1216 Helena Drive #8, Hixson was arrested October 16 on charges of driving while unlicensed and crossing median. Pedro Sepulveda, 42, of 854 Davis Street, Apt. E3, Gainsville, GA was arrested October 16 on charges of driving while license suspended and crossing median. Jonathan ... (click for more)

Not Everything Has Been Done To Save Hutcheson

I am a resident of Walker County and I have a personal belief that a hospital ranks equal to other basic services a community should offer (like police, fire, emergency services, school systems, government, etc.). I am not privy to all the management and financial conundrums concerning the feasibility of maintaining and growing Hutcheson, and as a private citizen I don’t believe ... (click for more)

Roy Exum: A Veterinarian’s Horse Sense

I suspect you’ve heard by now that a doctor in New York City, who volunteers with “Doctors Without Borders,” just got back from the African nation of Guinea on October 17 – last Friday – and on Thursday tested positive for the deadly Ebola virus. Luckily, he came in actual contact with only a few people but he reportedly rode a subway, took a taxi, went on a three-mile run and ... (click for more)

Freeman-Led Owls Whip Cleveland, 30-14, To Win 5-AAA Title

Junior Rashun Freeman's stunning versatility stole the show Friday night. Freeman caught a touchdown pass, returned a punt for a second score and had one of three Ooltewah interceptions as the fourth-ranked Owls whipped Cleveland, 30-14, to win the District 5-AAA championship in front of a near-capacity crowd at James N. Monroe Stadium. “I practice hard and that shows ... (click for more)

Baylor Beats Father Ryan For D-II State Volleyball Title

MURFREESBORO, Tenn. – Friday was a magical day for the Baylor Lady Red Raider volleyball team. Facing arch-rival Father Ryan for the fourth time this season, Baylor evened the score at 2-2, but the last time at Siegel High School was the sweetest as it came in the championship match of the D-II Class AA state tournament. Father Ryan had a huge group of students in its ... (click for more)