–Senate Majority Leader: Near An Accord On Student Loan Bill
–Sen. Reid: ‘Better Than 50-50′ Chance For Highway Bill Accord

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Tuesday
that Congress is near agreement on both surface transportation and
student loan bills.

In remarks on the Senate floor, Reid said there is a “general
feeling” that an agreement is near on the student loan interest rate
bill.

Congressional leaders have been exploring options for months to
develop legislation that would prevent a mandated increase in some
student loan interest rates from going forward.

Reid and Senate Minority Leader Mitch McConnell have been leading
the efforts to craft a compromise. The talks have focused on how to fund
the package.

Congress passed a bill in 2007 that was signed by President Bush to
temporarily reduce the interest rate on subsidized Stafford loans to
college undergraduates from 6.8 percent to 3.4 percent. That interest
rate decrease is set to expire July 1. Extending the interest rate
reduction would cost $6 billion for one year.

House Republicans passed legislation that extends the student loan
interest rate reduction for another year and pays for the $6 billion
cost by tapping funds from prevention and public health services that
were established by the 2010 health care law.

Reid has said that extending the student loan interest rate
reduction is important to seven million students and should be paid for
by ending a tax break for S corporations.

With the scheduled interest rate increase on July 1 rapidly
approaching, leaders from both parties are actively exploring compromise
proposals to fund the package.

Reid has suggested two pension-related provisions to pay for the
package. Republicans have offered four suggested offsets.

The Senate Majority Leader offered a mostly upbeat assessment about
work on the surface transportation bill.

“There is a possibility we can get this bill done,” Reid said,
adding that the chances are “better than 50-50″.

He said House Speaker John Boehner will be needed to secure the
final package.

A House-Senate conference committee continues to work on a
compromise transportation bill.

The Senate passed a two year $109 billion surface transportation
bill. House Republicans unveiled a five year $260 billion plan, but
never presented it to the full House.

Boehner has said that if an agreement can’t be reached by the end
of this month on a surface transportation bill, he will push a stop-gap
bill to fund current transportation programs until after the November
elections.

Another alternative is that Congress could pass a short-term
extension of transportation programs while the final multi-year package
is assembled and approved in July.

** MNI Washington Bureau: (202) 371-2121 **

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