Senate Republicans voted on Tuesday afternoon to block passage of a bill to extend lowered interest rates for Stafford Loans.
The $6 billion bill paid for the continued rates by closing a corporate tax loophole, in effect raising social security and Medicare texas on wealthy corporate shareholders. Republicans weren't having any of that, and the bill failed, 52-45 (a bill in the Senate needs 60 votes to advance to the floor).
The interest rates on Stafford Loans are set to double, from 3.4% to 6.8%, if Congress doesn't act by July 1. Everybody agrees with the politically popular proposal, but nobody can agree on how to pay for it. The House GOP passed their own version two weeks ago that paid for the rates by cutting the Prevention and Public Health Fund, which funds screenings for breast and cervical cancer. (Lord help the graduate with cancer who has to Sophie's Choice that one.) Obama has threatened to veto that bill, if it ever makes it out of the Senate, which it won't.
This is all bad news for recent graduates, who are already entering a bleak job market having just navigated skyrocketing higher education costs. But hey, at least we have iPads and Girls recaps, right? I'll get the Brooklyn Lager.
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