WASHINGTON — Setting the stage for another political showdown, the House on Friday narrowly passed a Republican plan that would stop an interest-rate hike on student loans — paid for with funds from President Barack Obama’s health care law.
Democrats want the rate kept low, but objected to eliminating a fund for public health and prevention programs to finance it. The GOP approach, they contended, was an attack on women and children who benefit from such programs. The White House vowed to veto the legislation, calling it a “politically motivated proposal,” and noted that the health fund provides hundreds of thousands of screenings for breast and cervical cancer.
If Congress fails to come to an agreement, loan rates for 7 million college students will double to 6.8 percent on July 1. The rate increase would hit new loans.
In seeking to avoid this latest partisan battle, House Speaker John A. Boehner, R-Ohio, may have launched one by quickly pushing forward the legislation with little Democratic support. The House vote was 215-195. The legislation is essentially dead on arrival in the Senate, where Democrats have proposed taxing higher-income households to fund the loan program.
Why can’t these loans be charged the same rate that would be charged by a bank or credit union. These kids are going to collaege with the intention of making 6 figured salaries, so let them pay what the working middle class pay for loans.
It would be nice if student loans were charged what a new car loan or a mortgage were at a bank or a credit Union. Unfortunately, the Republicans want to charge them double or triple that.
Actually, it is because Democrats took over the college loan industry as part of Obamacare making it a government program. They decided to set the rate at 3.4% and then double it in 2012. They were assuming the economy would improve, which was a pipe dream due to their socialist policies. If private banks were still allowed to give college loans, the rate would be much lower.
Actually, the rate is returning to what it was under the last president and his party controlled congress. When I first went to school in the 90’s the loan rate was 1.9-2.8 percent all backed and guaranteed by the US government, with the private sector getting all the profit. When my Fiance went to college in the mid 00’s, it was 6.8%. Still backed and guaranteed by the US government who took all the risk and got none of the rewards (which went to the private sector). Now, the rate ha gone down to around 3.8% which I believe is a fair rate. It is about what I would get from my credit union for a car or a house. Since the student loan rate has been adjusted every 4-8 years, it is nothing new that would cause it to be voted on. This happens all the time. If you actually cared to learn about the issue, perhaps you should research it instead of just going on your rant. The private sector is allowed to still give student loans, and their rates hover around 9%. They hate it when they actually have to take the risk and adjust their rates accordingly.
Because they are not making 6 figure salaries. Most grads are leaving college with a very expensive peice of paper, masive debt and finding that making 20-30k a year is the reality.
No wonder our country is falling behind the rest of the world when all we can do is produce workers tht can flip burgers. An investment in education is an investment in the future. Pehaps a better argument would be why are consumer loans charging such a high interest rate when banks profits are at record amounts
Good for John Boehner–
It was the Democrats who originally planned to double the interest rates and now they refuse to do so unless they can pay for it by raising taxes on small businesses.
So now Democrats not only believe opposing health care mandates is an attack on women, but they also think using money from the unconstitutional health care law to keep college loan interest low is an attack on women? Someone should remind them that they took control of the college loan industry as part of Obamacare. It makes perfect sense to use Obamacare funds to support the continued cost of the low rates.
Why would anyone still support these scumbags?