Student Loan Legislation Now a Partisan Fight
The Senate has used the student loan legislation as its latest arena for a partisan face off during this election year. Both sides are pounding away at one another with students left in vain. Congress is returning after a spring recess of a week, and the Senate will vote on Tuesday to see if debate will start on the plan by the Democrats to maintain student loan interest rates at 3.4%. The interest rate on these loans is scheduled to double starting on July 1.
The $6 million legislation would be funded by the collecting of Medicare and Social Security payroll taxes from the top earning executives at some of the large privately held companies.
Republicans want to take a vote on their own version of the bill, which would also freeze the rates for another year, but would be financed through the elimination of a preventive health care program that President Barack Obama established when he performed his overhaul of the health care system in the U.S.
Both sides say the other side has offered an unacceptable proposal, but neither side is expected to receive enough vote to have their proposal approved. However, it works out the majority of analysts feel a bipartisan agreement will be hammered out before the July 1 deadline hits.
Neither side want to be blamed by nearly 7.4 million loan holders that they were responsible for the increase of interest rates. The loans are for students that cannot afford to pay for tuition in full at universities. The loans have a low interest rate and the student does not have to start repaying until he or she has completed their studies.