LAFAYETTE, Ind. (WLFI) - Indiana Congressman Todd Rokita (R) touted Tuesday a recently passed House bill as a solution for Purdue and college students who need loans to pay for higher education. But House Democrats say it's more costly than no solution at all.
As News 18 reported Monday, a temporary cut in student loan rates will expire July 1 if Congress doesn't act, doubling the interest rate for Stafford loans.
The House passed the Smarter Solutions for Students Act May 23.
The bill would make the student loan interest rate market-based, tying it with the the 10-year Treasury Note rate plus 2.5 percent with a cap of 8.5 percent for undergraduates. According to the Congressional Budget Office, the move saves the government $3.7 billion over 10 years.
"For far too long, students at my Purdue University and other colleges and universities in Indiana have seen interest rates they pay and their student loans used as a political bargaining chip, kicking the can down the road with price controls. We changed that a week ago," says Rep. Rokita.
But House Democrats cite data from the nonpartisan Congressional Research Service which states students will actually pay more in interest under the current proposal than if no action is taken and the loan rates double July 1.
The bill now heads to the Senate for consideration.
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Matt Painter has Purdue on the upswing, and they head into Saturday's Crossroads Classic clash with Butler on a 3-game winning streak. The goal? Win the school's first game in the elite doubleheader.