The defeat of the student loan bill in the Senate on Wednesday clears the way for new negotiations to restore the lower rates. Lawmakers are racing the clock before millions of students return to campus next week. Borrowing terms have doubled since school let out for the summer.
Republicans and a few Democrats blocked a White House backed proposal that would have restored the 3.4 percent interest rates on subsidized Stafford loans for one more year. The failed stopgap measure was structured to give lawmakers time to take up comprehensive college affordability legislations and dodge the 6.8 percent jump.
Many young people get out of college with a large amount of student debt; have issues finding a job to pay living expenses and the payments toward the student loans. Knoxville bankruptcy attorney,
Patrick Woodside, with the Law Office of Mayer and Newton, recently attended a seminar on student loans and how to help with the burden they present.