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Continued: Kline's student loan bill gains, but interest spike still looms

  • Article by: KEVIN DIAZ , Star Tribune
  • Last update: May 24, 2013 - 9:41 AM

Amid a flurry of competing proposals, including one to peg student loan rates to the ultra-low interest rates offered to banks, Kline’s bill could set the stage for a politically sensitive round of negotiations in June, with both sides eager to claim the education mantle.

Despite the prevailing partisan gridlock in Congress, Kline said he’s hopeful for an agreement, because his plan builds on the market-based approach in Obama’s 2014 budget. Kline emphasized that he conferred closely with Education Secretary Arne Duncan. Analysts say significant gaps remain between Kline’s plan and the president’s, which aims to offer students better repayment protections.

In a similar predicament during last year’s presidential elections, Congress chose to punt, leaving the rates where they are now.

 

Follow Kevin Diaz on Twitter at StribDiaz.

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  • Minnesota Rep. John Kline

  • Student loan debt

    Minnesota’s college class

    of 2011

    • Average student loans: $29,800, from public and private nonprofit universities

    • Rank: Third-highest in country

    • Rate: 71 percent took out student loans (fifth-highest in U.S.)

    • Defaults: Three-year default rate of 9 percent (13.4 percent nationally)

    Source: Institute for College Access and Success

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