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GOP Student Loan Bill Passed, Dems Given Credit

From the Associated Press:

House approves lower rates on student loans

House approves deal that would save students millions in loan fees, sends bill to White House

By Philip Elliott | July 31, 2013

WASHINGTON (AP) — A bipartisan bill that would reduce the costs of borrowing for millions of students passed the House on Wednesday and was heading to President Barack Obama for his signature.

Note how the lead sentence calls this " bipartisan bill." And never mind that for the last few weeks it has been lambasted in the news media as an evil Republican bill. A plot to tie the loan rate to the financial market. While the angelic Democrats didn’t want the loan rate to ever fluctuate.

And never mind that the GOP caught holy hell for pushing this instead of the Democrat’s bill. Now it’s "a bipartisan bill." And, very soon, it will only be remembered as Obama and the Democrats’ bill.

The legislation links student loan interest rates to the financial markets, offering lower rates for most students now but higher ones down the line if the economy improves as expected…

To be fair, if you plow down into the bowels of the article, the AP does point out that this is a Republican bill. If only in order to segue to how the bill is going to cause the loan rates to skyrocket in a few years.

"Changing the status quo is never easy, and returning student loan interest rates to the market is a longstanding goal Republicans have been working toward for years," said Rep. John Kline, the Republican chairman of the House Committee on Education and the Workforce. "I applaud my colleagues on the other side of the aisle for finally recognizing this long-term, market-based proposal for what it is: a win for students and taxpayers."

The House earlier this year passed legislation that is similar to what the Senate later passed. Both versions link interest rates to 10-year Treasury notes and remove Congress’ annual role in determining rates…

Negotiators of the Senate compromise were mindful of the House-passed version, as well as the White House preference to shift responsibility for interest rates to the financial markets. The resulting bipartisan bill passed the Senate 81-18…

Yes, Obama did seem to back the Republican version of this bill. But the low information news media seldom reported that. And the low information voters certainly never knew it.

The compromise that came together during the last month would be a good deal for all students through the 2015 academic year. After that, interest rates are expected to climb above where they were when students left campus in the spring, if congressional estimates prove correct…

And guess who will be blamed when the interest rates go up? But rest assured the Democrats, like Sheila Jackson-Lee, will come along and set things right, again:

Lawmakers were already talking about changing the deal when they take up a rewrite of the Higher Education Act this fall… "We will have the ability to come back and look," said Rep. Sheila Jackson Lee, D-Texas…

Just to show how this has been played in the press, here is a comment from a typical low information person, posting in the Yahoo comments section on this article:

"Republicans fought this every inch of the way. They deserve ZERO credit. They’re JUST SHOPPING for future Votes."

As usual, this person has things exactly backwards. And it is no accident.

This article was posted by Steve on Thursday, August 1st, 2013. Comments are currently closed.

One Response to “GOP Student Loan Bill Passed, Dems Given Credit”

  1. GetBackJack says:

    Why is the US Federal Government involved in loaning money at all?


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