Senate Fails to Pass Bill to Extend Student Loan Interest Rate Cuts

 

The fate of Stafford student loan interest rates still hangs in the balance after the United States Senate rejected both the Republican and Democratic proposals to stop the interest rates on these loans from doubling on July 1.

Both bills would have extended the $6 billion interest rate cuts for another year.

The Democratic bill failed mostly on party lines, with only one Democrat, Jim Webb of Virginia, voting against the Democrats’ bill. The bill failed 51-43.

The GOP bill failed 34-62 with eight GOP Senators joining Senate Democrats to vote no.

The White House, which has recently taken an election year interest in college students’ problems, was quick to blame Republicans for the unresolved issue, however.

“With only 37 days left to stop student loan interest rates from doubling on July 1, Senate Republicans still have not proven that they’re serious about resolving this problem,” White House Press Secretary Jay Carney accused afterward, as reported by Politico.

Carney refused to acknowledge that Senate Democrats opted not to vote for the GOP version of the bill, which had already passed in the House of Representatives.

Sen. Mitch McConnell (R-Ky.) pointed out the White House’s hypocrisy, noting that the President hasn’t spent as much time coming up with a legislative solution to the issue as he has spent complaining about it.

“If the president’s got time to run around to late-night comedy shows and college campuses talking about this issue, then he can pick up the phone and work out a solution,” McConnell said, referring to Obama’s appearance on Late Night with Jimmy Fallon.

Republicans and conservatives have noted that the “looming crisis” Obama claims will occur if the student loan interest rate cut is not renewed is largely fictitious. Most borrowers will not be affected the interest rate increase and those that are will only see a $7 increase per month. Meanwhile, it will cost the federal government $6 billion a year to continue subsidizing those loans. Thus, many Republicans see any federal plan to extend the cuts as fiscally irresponsible.

The Senate is now out of session until Monday, June 4. Neither party announced whether or not it will revisit the issue after next week’s recess.

By /// May 25, 2012
Francesca Chambers About Francesca Chambers

Francesca is the Editor of Red Alert Politics - an online publication written by and for young conservatives. Red Alert Politics is a product of Clarity Media Group, the parent company of The Washington Examiner and The Weekly Standard. She is also a contributor to The Washington Examiner.

Francesca is a veteran of several political campaigns and political organizations. She has also worked in new media and communications at The Leadership Institute, at the Republican National Committee and on Capitol Hill. She has been featured as a speaker at Leadership Institute, Cato Institute, Americans for Prosperity's "Defending the American Dream Summit," the State Policy Network's annual conference and CPAC, in addition to appearing as a regular guest on the "Big Picture" with Thom Hartmann on Russia Today.

She has also appeared on ABC's "Nightline", PBS' 'NewsHour', PBS' "To the Contrary", MSNBC, CNN, on TheBlazeTV (aka Glenn Beck TV) and had radio segments on Take Action News with David Shuster, NPR and "The Michael Koolidge Show."

In 2012 she was named to the DC GOP's first ever "35 under 35" list.

Francesca graduated from the University of Kansas with BAs in Political Science and Journalism. At KU she was an editor of the University Daily Kansan and an active member of Student Senate.

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