Senate Democrats/via Flickr
June 12, 2014
A bill intended to help New York college students lower the rates on their student loans has been blocked by a filibuster in the US Senate.
In New York, the average student loan burden is $27,000. Nationwide, the normal interest rate on a student loan is more than two times higher than the average rate for a government-backed mortgage or treasury note.
And, with the defeat of the Federal Student Loan Refinancing Act, it doesn’t look like that will change anytime soon.
The legislation would have allowed borrowers to lock in lower interest rates when they plummet, as they have these days. New York Democratic Senator Charles Schumer says the bill’s defeat is bad for people across New York.
“They can’t buy a house. They delay buying a car. They delay starting a new business. They may even delay starting a family, ‘cause of the burden of student loans which we want to take off their shoulders.”
A majority of Republicans helped kill the bill because it was paid for with tax increases on the wealthy.