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Dems Fight GOP Effort To Extend Loan Rate

A surprisingly fair report from the Associated Press:

House GOP set to curb college student loan costs

By ALAN FRAM
April 27, 2012

WASHINGTON (AP) — Republican leaders are ready to try pushing legislation through the House holding down interest rates on federal loans to millions of college students.

Democrats say that’s a goal the GOP has adopted only lately, but the top House Democrat is opposing the measure anyway in a fight that highlights how election-year politics is coloring Congress’ work.

In the first place, the Republicans have never opposed keeping the interest rate lower. They have just sought to have it paid for, which is supposed to be a requirement under the Obama/Democrat PAYGO rules.

Secondly, notice how the Democrats are the ones opposing the effort to keep the rates down, because they don’t want to lose this propaganda tool. After all, getting elected is all that matters.

They don’t care about the students or they would not have structured the loan bill to need to be renewed in the middle of an election year. They could have made these rates permanent when they controlled both Houses of Congress in 2007.

The House planned to vote Friday on the bill, which would keep interest rates at 3.4 percent for subsidized Stafford loans, instead of rising as scheduled to 6.8 percent on July 1. The GOP-written package would cover its $5.9 billion cost by plucking money from a preventive health fund established in President Barack Obama’s 2010 health care overhaul law — a cut many Democrats are reluctant to make.

If they were smart, the Republicans would get this $5.8 billion dollars from Obama’s $8 billion dollar ‘slush fund’ that we have mentioned earlier. Which even the GAO has said should be cancelled, since it is just a ploy to delay Obama-Care’s gutting of the popular Medicare Advantage program.

"Our country’s facing some major economic and fiscal challenges, yet here’s the president wasting time on a fake fight to try to gain his own re-election," House Speaker John Boehner, R-Ohio, told reporters. He called the college visits "political stunts and, frankly, they aren’t worth it and worthy of his office."

It should be noted that this increase, even if it happens, would only apply to students loans made after July 1, 2012. Loans made between July 2007 and July 2012 are unchanged.

So, for instance, Sandra Fluke’s tweet: "don’t double my rate" – was actually a lie. Her rate will not change, since she is in her last year of law school. And when students chant along with Obama, "don’t double my rate" at least one quarter of them are lying, since they have nothing to worry about.

For House Minority Leader Nancy Pelosi, D-Calif., the emphasis was the GOP’s cuts in the preventive health program, whose initiatives she said include breast cancer screening and children’s immunizations. She contrasted that with a Democratic bill extending the low student rates by cutting subsidies to oil and natural gas companies, which is opposed by the GOP.

Pelosi characterized the Republican view as, "’We prefer tax subsidies for big oil rather than the health of America’s women.’"

Ms. Pelosi controlled the House Of Representatives in 2007 that passed this bill mandating these loan rate increases. The Democrats enjoyed veto-proof majorities in both houses of Congress.

Republicans noted that many Democrats had voted earlier this year to take money from the preventive health fund to help pay to keep doctors’ Medicare reimbursements from dropping. Obama’s own budget in February proposed cutting $4 billion from the same fund to pay for some of his priorities

Pickers of nits.

This article was posted by Steve on Friday, April 27th, 2012. Comments are currently closed.

2 Responses to “Dems Fight GOP Effort To Extend Loan Rate”

  1. tika says:

    “They don’t care about the students or they would not have structured the loan bill to need to be renewed in the middle of an election year. They could have made these rates permanent when they controlled both Houses of Congress in 2007.”

    Democrats really piss me off.

  2. AcornsRNutz says:

    “’We prefer tax subsidies for big oil rather than the health of America’s women.’”

    No, I prefer cheaper gas which I pay myself and use to free birth control pills which I don’t. I think quite a few Americans feel that way.


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