President Barack Obama tells a crowd of about 250 that he’s pleased with a bill that will save construction jobs and keep students from paying higher interest. To his left stands Maryland Gov. Martin O’Malley, D, and to his right is Transportation Secretary Ray LaHood. SHFWire photo by Chelsea Boozer.
WASHINGTON – President Barack Obamasigned into law a bill that he says will create or save millions of jobs and help millions of college students.
Obama wore his traditional dark suit, brick-red tie and broad grin at Friday’s signing ceremony for the the bill Congress was pressured into passing last week. It will rebuild the country’s roadways, extend the National Flood Insurance Program and maintain student loan interest rates that were set to double.
“This bill will keep thousands of construction workers on the job rebuilding our nation’s infrastructure,” Obama told the crowd of about 250 people in the East Room of the White House. “These steps will make a real difference in the lives of millions of Americans.”
The bipartisan bill, which takes effect immediately, authorizes $105 billion to be spent on road and transportation projects over the next 27 months. Two unemployed construction workers stood behind Obama as he signed the bill.
Obama has been quick to tout it as a job producer, and he urged Congress for months to pass the bill, which he said will “have an immediate impact on the economic security of American families.”
At the last minute, just before a July 1 deadline for loan interest rates to increase and a July 31 deadline for the flood insurance program to expire, the House and Senate came to an agreement.
“This is so good for America,” Transportation Secretary Ray LaHood said after the ceremony. “So many people are going to go to work as a result of this, building roads and bridges.”
Obama signed the bill the same day the Bureau of Labor Statistics released its monthly jobs reports that most called disappointing. It showed 80,000 jobs were created in June, and the unemployment rate stayed at 8.2 percent – 0.9 percent below the level in June 2011.
“It is important not to read too much into any one monthly report and it is informative to consider each report in the context of other data that are becoming available,” Alan Krueger, chairman of the Council of Economic Advisers, said in a statement.
He noted the economy has added 504,000 manufacturing jobs since January 2010, which he said is the largest amount in any 29-month period since April 1995.
Obama put some pressure on Congress, asking it to go beyond this bill and use the money the nation is no longer spending on war to build roads, bridges and wireless networks.
“Let’s keep finding ways to work together to grow the economy and to help put more folks back to work,” Obama said. “There is no excuse for inaction when there are so many Americans still trying to get back on their feet.”
Three students stood alongside the construction workers, members of Congress and other administration officials who crowded around the president as he signed the combination bill.
For the next year, college students are assured that federal subsidized loan interest rates will stay at 3.4 percent. The White House estimates that will save more than 7 million students about $1,000 each.
Under the new law, students forfeit the six-month repayment grace period and will have to start repaying their loans as soon as they leave school. Graduate student will have to pay interest on their loans while they are in school.
In 2007, the interest rate on Stafford loans was 6.8 percent. Congress passed a bipartisan bill to cut the rate to 3.4 percent by 2011. The new law extends that rate for the next year, but the rate could rise after that.
Although he praised Congress for “an outstanding piece of business,” the president said more needs to be done.
“It’s not enough just to keep interest rates from doubling. I’ve asked Congress to reform and expand the financial aid that’s offered to students,” he said.
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Editor’s note: This story was previously published on Scripps Howard Foundation Wire.
I believe the student loan “adjustment,” may not be as beneficial to students as hoped for. A one year adjustment is not a meaningful adjustment for many and having to start re-paying immediately upon leaving school will be difficult for many students who are searching for -but have not already obtained- employment. The real kicker is, “The new law extends that rate for the next year, but the rate could rise after that.”
In Washington talk, what “could” rise will rise.
I believe it the student will have to begin paying right away then just maybe the student will try to do better in class and work harder in landing a job.