Congress gave final approval on Friday, June 29th to legislation that combines a two-year transportation measure with bills to extend subsidized student loans and revamp federal flood insurance, wrapping up a bruising session with measures that will be popular on the campaign trail. The $6.7 billion student loan provision extends the current 3.4 percent interest rate on Stafford loans for one year, financed by changes in pension laws and a restriction on the length of time students could get those loans. The flood insurance program increases premiums and requires people living near levees to have coverage.For Republicans, the huge measure violated a number of promises that the new leadership had made to the Tea Party-fueled electorate that brought it to power.
Bills were not to be bundled together at the last minute. They were supposed to be posted on the Internet 72 hours in advance, and they were generally to rein in — not expand — the scope of government.
During the 2010 campaign, Republicans taunted Democrats for enacting laws like the health care legislation that were too long to read. At 596 pages, posted on Thursday night, this one could not have been read by many.
Not all good news on student loan interest rate. To make up for the "savings"- Graduate students will now have to pay the interest on their loans while they're still in school. All students will have to start paying back the money they borrowed immediately after graduation — the six-month grace period during which the government paid the interest is gone. Lawmakers also limited the number of semesters needy students can receive a Pell Grant and made it harder to qualify for the maximum award. The total cost to students, according to some estimates, is $18 billion to $20 billion extra over the next 10 years.Picture: Dom's Bakery- Hoboken, NJ
