–Senate Defeats Democratic and Republican Plans
By John Shaw
WASHINGTON (MNI) – The Senate voted Thursday to reject plans from
both sides that were designed to prevent a scheduled increase in some
student loan interest rates from going forward.
In back-to-back Senate votes which illustrate how the student loan
interest rate issue has become ensnared in election year politics, the
Senate first voted to reject the Republican plan and then voted to
reject the Democratic plan.
Both required 60 votes to pass; neither came close to reaching that
number.
Before the vote, Senate Majority Leader Harry Reid said Republicans
have been delaying a solution to the matter for weeks and have even
prevented formal consideration of the bill.
“The student loan issue is important,” Reid said.
Senate Minority Leader Mitch McConnell said Democrats “don’t really
want to solve the problem,” but are determined to use it for political
reasons.
Congress passed a bill in 2007 to temporarily reduce the interest
rate on subsidized Stafford loans to college undergraduates to 3.4% from
6.8%, but that interest rate decrease is set to expire July 1. Extending
the interest rate reduction would cost $6 billion for one year.
President Barack Obama has called for legislation extending the
interest rate reduction to maintain the 3.4% level.
House Republicans passed legislation several weeks ago that extends
the student loan interest rate reduction for another year and pays the
$6 billion cost by tapping funds from prevention and public health
programs that were established by the 2010 health care law.
Senate Republicans support the same bill.
Reid said 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.
But Reid has accused Republicans of using an offset that would
damage a critical health care program. “It would be a shame to use that
payfor.”
** MNI Washington Bureau: (202) 371-2121 **
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