News

Durbin: Buffett Rule Could Help Students

Durbin: Buffett Rule Could Help Students

A tax on millionaires would pay for student loan debt relief under a plan proposed by U.S. Sen. Dick Durbin (D-Ill.)

The bill would allow federal and private loan borrowers to refinance at current interest rates. Durbin says it would be fully paid for by enacting the so-called “Buffett Rule,” which would charge a 30 percent minimum tax on those making more than $2 million per year.

“That applies to 2 percent of wage earners in America,” Durbin said. “The revenue that comes in from that minimum tax on millionaires is enough to finance what we’re talking about here—to pay for the refinancing of these loans.”

The rule is named for investor Warren Buffett, the fourth-richest man in the world as of this year, who said he believed it’s wrong that he was taxed at a lower rate than his secretary. It was first proposed by President Obama in 2012, but didn’t gain enough support to pass in Congress.

The current rate for the most popular federal student loans, known as Stafford loans, is 3.86 percent, but Durbin says existing borrowers may be locked in at rates as high as 7 percent.

Durbin expects the bill to put up for a vote this year, though he added there are no Republican co-sponsors of the legislation.

Recent Headlines

in Local

Ben U Student Airs Concerns Following Private Forum

school test

The questions surrounding Benedictine University's decision to cancel undergraduate programs at its Springfield campus continue.

in Local

Springfield Clinic’s “GIVE75″ Campaign Continues

sojourn

Springfield Clinic is celebrating its 75th birthday but the company is giving the presents instead of receiving

in Local

Bar Assoc. Offers Help Voting for Judges

gavel2

How do you know how to vote for judges? The Illinois State Bar Association has some help.

in Election 2014, Local

Rauners Say Bruce and Quinn Agree on Social Issues

Illinois Republican gubernatorial candidate businessman Bruce Rauner participates in a Republican gubernatorial candidate debate Tuesday, Feb. 18, 2014, in Springfield, Ill. The four Republican gubernatorial candidates said that they’ll be willing to work with unions if elected but differed on how to approach the relationship during a downstate debate that largely focused on pension reform, taxes and just briefly on personal issues that have dogged some of the candidates.

Speaking to a coalition of women supporting her husband’s campaign, Diana Rauner said Gov. Pat Quinn has tried to take the focus off jobs and the economy.