The Senate failed to advance a bill today that would have kept the interest rate on Stafford federal student loans from doubling to 6.8% by this June. Republicans and Democrats now profess to support averting the change, but they differ on how to pay for the extension. Republicans want to take the money from the Affordable Care Act’s Prevention Fund, a trick they have pulled before. Democrats want to close a loophole that lets rich S-Corporation owners avoid taxes. Both sides oppose the other’s plan. But the House passed its version on a party-line vote with Republican support. Because of the supermajority needed to advance legislation in the Senate, they couldn’t do the same.
On a party-line vote, senators voted 52 to 45, short of the 60 votes necessary to proceed to debate on the bill. There is no clear path forward at the moment for lawmakers, who have until July 1 to reauthorize lower rates for roughly 7 million borrowers who could see rates on subsidized student loans jump from 3.4 to 6.8 percent.
Senate Democrats offered Republicans a vote on their pay-for, the cuts to the Prevention Fund, which would actually zero it out. But that offer wasn’t enough to get Republicans in the Senate to relent and pass the motion to proceed.
At an event today, Democratic Senator Jack Reed said his party would be open to “sensible proposals to pay for this.” But nobody has any idea what both Democrats and Republicans would find sensible, especially with the student loan interest rate becoming a political football in recent weeks. There’s no sense that negotiations have begun to find a pay-for that would get broad agreement.
The smart money in Washington all assumes that some accommodation will be reached. I’d like to see some more proof of that before agreeing.




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Didn’t Reid refuse to entertain the house passed version of the bill?
Who in their right minds would want to pick a fight with college kids right before a Presidential Election?
Who in their right mind does not think that White Suburban voters who tend to vote GOP and tend to send their kids to college are going to like this?
Pols who expect to win normally save the crazy until after they are safely elected. Pols who expect to win betray their base after the election. Conclusion the GOP does not expect to win.
I’m still waiting for a cogent explanation for why Senate Democrats didn’t do a damn thing in this Congress or the last one to rein in filibusters. The best I can come up with is that the White House and the party mandarins are perfectly fine with the rules as they are because it gives them an excuse for not passing progressive legislation.
This is the wrong debate in any case. I mean, it’s so far-gone. The right debate should be, “Why do we force our kids to take out mortgages to get an education at all? Fund the damn state schools and stop giving aid to private and for-profit colleges.”
However, realizing that we are a “center-right” country that Very Serious People keep trying to insist on the rest of us…let’s change the conversation again: why was the interest rate from 1998-2006 1.76% during school and 2.36% during repayment? Oh, right…George Bush:
Deficit Reduction Act of 2005
Nailed it;)
It’s obvious to me that Congress just won’t work. The very term smells of corruption and incompetence. Time to reduce the branches to two.
Both parties will do all that they can to discourage higher education but try to blame the other guy. When people coming out of hs realize that there are almost no jobs for them after graduation and they will be sunk in debt so deep that they will never get out, they will stop trying. Then the elite can more forcefully train their efforts on making hs a useless endeavor. Soon we will have what is wanted, an uneducated work force whose best option is to join the military based on all kinds of promises that will not be kept, but that won’t be explained ahead of time.
Spot on.
Ladies and gentlemen, shitter has TOLD THE TRUTH! There will be no ice cream in Hell today! Make a screen shot of this post, you saw it live!
Oh. My. God. In Whom I have my doubts. No matter. I agree with you 100%. Perhaps you should link this miracle to Conservative Cave.
More kabuki, David. Just more kabuki.
Thanks for the post.
Is anyone surprised?
I’m not.
Government no longer works for us. We pay them to screw us. Needs to change asap.
Whose surprised the banks own these guys.
It’s actually the Senate Democrats who blocked this: At the start of the Session, the Democrats voted that for this session, it would take 60 votes in the Senate. And Senate President Biden went along with it. And he went along with this vote. Filibuster, or blocking a vote by threatening a filibuster is not constitutional. We have the Democrats to thank for this: Credit where credit is due.