A Senate bill that would freeze a low interest rate on one type of federal student loan for another year, along with buying lawmakers more time to craft a long-term strategy for setting all education loan interest rates, failed to clear a procedural vote Wednesday afternoon. That bounces the issue back to negotiations yet again, as lawmakers try to reach a consensus before the August recess, at which point most students will have to lock in their loans for the coming school year.
The vote was 51 in favor and 49 opposed, not enough to advance the bill.
The failed key test vote came after contentious discussions Tuesday, much of it between Democrats who have been split on the issue. Senate Majority Leader Harry M. Reid (D-Nev.) met for hours with White House Chief of Staff Denis McDonough and Education Secretary Arne Duncan. At the weekly Democratic caucus luncheon, Sen. Elizabeth Warren (D-Mass.) harshly criticized Sen. Joe Manchin III (D-W.Va.) for sponsoring a bill with Republicans that would tie interest rates for all major federal education loans to market rates but would not impose a formal cap on how high those rates could go in future years.
For the past two years, the rate has been 3.4 percent. That rate expired July 1, bouncing it back to 6.8 percent. Interest rates on other education loans offered by the government, which make up the bulk of loan disbursements each year, have rates of 6.8 and 7.9 percent. Right now, interest rates of all sorts are at low levels, making these fixed rates seem high for a government loan.
I thought the Dems were the party of young people. Did I miss something here? I know folks desperately want to blame this on Republicans...but in the end it looks like the Democrat controlled Senate allowed interest rates on student loans to stay high over some technicality. Good thing the parents of all those students are rich otherwise higher education for middle class children would be in trouble. Don't you think?
Now even the party of the people is squeezing the middle class. Unreal!!!! :faint:
Governor Hickenlooper will be on 850KOA with Mike Rosen this morning at 10am.
Call in at 303-713-8585 and ask him why he whispered his support of a billion dollar tax increase to a room full of CEOs but refused to tell the public when asked?
Still waiting for that Billion Dollar Tax Hike PDA!!
Im baaaack wrote: Someday, the young people are going to wake up and they are going to be pissed.
I doubt it. Just keep them fat and happy, bread and circuses and all will be well.
Americans aren't the French who take to the streets over the price of potatoes.
Thomas Sowell: There are no solutions, just trade-offs.
Im baaaack wrote: Someday, the young people are going to wake up and they are going to be pissed.
I doubt it. Just keep them fat and happy, bread and circuses and all will be well.
Americans aren't the French who take to the streets over the price of potatoes.
After I posted that I realized just how wrong I was. There I said it. I was wrong.
Oh good grief. What a cry baby. It would be just fine with me if the next time Wimpy Bartender just sleeps in rather than sign off on unconstitutional bills and billion dollar tax hikes.
Yes George, Hick is crying in his wimpy ale. What an icky excuse for a man.
Arch...my disgust is bipartisan, i.e. Chris Crispy Creme. I'm equally disgusted with W as he is the reason why the last several times I have flown the friendly skies I have been assaulted by the TSA and it is also W who gave us DHS, for whom I have deep contempt.
This is NOT about who won or lost an election. It's about the political class raising taxes on the serfs. If a Republican governor had cowardly signed a billion dollar tax increase as ChickenHicken did yesterday, I would be screaming just as loud.
So for the record, I am NOT whining. I am, however, projectile vomiting.
No Arch you got that all wrong. A billion dollar tax hike is way more unpleasant than projectile vomiting. At least when the vomiting is over, one feels much better. Not so much with a forever tax hike.
