US Senator Mike Johanns supported a motion last week to keep student loan rates from doubling at the end of the month.
He says he supports a proposal that would permanently tie student loan interest rates to the 10-year treasury rate.
Johanns says this would ensure lower student loan rates during times of economic hardship.
He says the proposal would lower the interest rate for the coming school year on all newly-issued student loans.
"The non-partisan Congressional Budget Office estimates that this Senate Republican plan would save $15.6 billion over 10 years. The Democrats in the Senate are adamant in ignoring the market-based plans. Their proposal would be a 2-year band aid that applies to less than one half of all federal student loans.”
Johanns says the Democrats’ plan is an extension of current rates for current loans and costs 8.3 billion over two years.
He says these costs would be paid for through permanent tax increases.
Senator Johanns’ comments came during his weekly conference call with Nebraska media.