Are Democrats Deliberately Letting Student Loan Rates Double?

by Don Seymour:  Are President Obama and Senate Democrats deliberately letting interest rates on student loans double on July 1? After all, “[i]t has been a good political issue for Team Obama in the past.” With just two weeks left,the White House appears to see more political benefit in “pretending to be in a fight over interest rates” than in actually solving the problem for students and families. Consider the evidence:

• APRIL 10: President Obama releases a budget that called for a market-based interest rate for student loans.
• MAY 9: Education & the Workforce Committee Chairman John Kline (R-MN) introduces the Smarter Solutions for Students Act (H.R. 1911) – another part of the GOP jobs plan. The bill echoes the president’s proposal and is a long-term solution that moves student loans to a market-based rate. It also protects borrowers by capping rates, something the president’s plan does not do. The Associated Press says Republicans are giving the president a “rare win.”
• MAY 22: The president threatens to veto the Smarter Solutions for Students Act.
• MAY 23: The House passes the Smarter Solutions for Students Act to stop rates from doubling on July 1, take politics out of the process, and make paying for college easier and fairer.
• MAY 30: Comparing the president’s plan and the House-passed bill, a Brookings expert says, “I don’t think they’re very far apart, honestly.” The Wall Street Journal says “the White House likes to run against a doubling of rates even when, as in this case, they are running unopposed.”
• TODAY: The president’s Democratic-controlled Senate still hasn’t passed a bill that keeps rates from doubling, let alone a long-term solution that’s better for students and taxpayers.

“I’m now concerned that the president and his party have decided to deliberately allow rates to rise on students and families,” said Speaker Boehner last week. “The consequences of this cynical political strategy are real. It could lead to rates rising on students and families on July 1 at a time when they can least afford it.” As we’ve shown, young Americans are getting pummeled under President Obama.
Click here to learn more about the Smarter Solutions for Students Act, and visit gop.gov/jobs to read more about the Republican Plan for Economic Growth & Jobs.

---

Tags: Democrats, student loan rates, doubling Speaker, John Boehner To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. Thanks!