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Student Loan Rates Extended

Lawmakers moved quickly on Friday to end a legislative dispute that got caught up in politics on Capitol Hill and on the campaign trail, as President Obama repeatedly blamed Congress for delaying and Republicans accused the president of being AWOL in negotiations.But on Friday, Senate leaders touted the bipartisan cooperation in ultimately reaching the agreement, which came earlier this week.

“On the student loan issue, Republicans and Democrats worked hard to find common ground,” Senate Minority Leader Mitch McConnell (R-Ky.) said. “The agreement we’ve reached will ensure that college students, who are already facing enormous challenges in the Obama economy, won’t be paying higher interest rates next month.

“This has been an incredibly productive week,” said Senate Majority Leader Harry Reid (D-Nev.). “And it tops off a fruitful session.”

Everyone agreed the current interest rate for certain federal school loans should be extended for one more year. What Republicans and Democrats differed on was where to find the $6 billion to pay for it. Without congressional action, the rate would have doubled in July causing the average student debtor to shell out an additional $1,000 each year.

The final bill pays for the program by shortening the amount of time certain students can receive a federal subsidy for their loans, and by changing rules related to worker pensions.

…More at Student loan, transportation deals done – Politico