WASHINGTON (6/25/13)--With the July 1 deadline for federal student loan action rapidly approaching, student lending issues remain a high priority in the U.S. Congress. The Senate Banking Committee today has scheduled a full committee hearing entitled "Private Student Loans: Regulatory Perspectives."
The federal student loan rate is currently capped at 3.4%, and this limit will double to 6.8% on July 1 if Congress does not take action. Legislators are reportedly working to craft a solution. Other potential student loan fixes have also been introduced, but none have been passed.
Potential student loan fixes include:
Two other student lending bills failed in the Senate.
The Consumer Financial Protection Bureau last week emphasized that any federal student loan rate increase that occurs on July 1 will apply only to new loans. Federal direct loan rates will remain at 0% while a given student is still in school, the CFPB added.
Other hearings credit unions will want to watch out for this week include:
The Senate Banking Committee will hold a hearing on the nominations of Richard Metsger to be a member of the National Credit Union Administration board, Melvin Watt to be director of the Federal Housing Finance Agency, and others on Thursday. (See News Now story: NCUA Nomination Could Move Quickly.)