A Democratic bill intended to prevent the doubling of some student loan interest rates is in limbo now that Senate Republicans have blocked its consideration, Jonathan Weisman reports:
Along party lines, the Senate voted 52 to 45, failing to clear the 60-vote hurdle needed to beat back a filibuster and begin debating the measure. Senator Olympia J. Snowe, the retiring moderate Republican from Maine, voted present.
Republicans said they wanted to extend Democratic legislation passed in 2007 that temporarily reduced interest rates for the low- or middle-income undergraduates who receive subsidized Stafford loans to 3.4 percent from 6.8 percent.
But they oppose the Senate Democrats’ proposal to pay for a one-year extension by changing tax law that currently allows some wealthy taxpayers to avoid paying Social Security and Medicare taxes by classifying their pay as dividends, not cash income.
“They want to raise taxes on people who are creating jobs when we are still recovering from the greatest recession since the Great Depression,” said Senator Lamar Alexander, Republican of Tennessee, who instead wanted to pay for it by eliminating a preventive health care fund in President Obama’s health care law.
What are your thoughts about the Senate’s vote? Should Congress keep the reduced student loan interest rate from 2007, or allow the reduction to expire? Let us know your thoughts in the comment box below.
