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Student loans doubling -while GOP blows smoke..
Last comment by HMJC 2 years, 4 months ago.

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The GOP is so set on destroying the Obama Administration that they are neglecting the American people. There are issues on the table that need to be dealt with but they are wasting time chasing theories. We need to move forward and the GOP needs to get focused on Americas business.

A battle is heating up between President Obama and Republicans on how to prevent student loan interest rates from doubling to 6.8 percent in July -- a flashpoint in the ongoing efforts of both parties to win young voters, who strongly favor Democrats. [...]

Speaker John Boehner's (R-OH) office lashed out at the White House Wednesday after the event was announced. Labeling it "stunning student loan cynicism," Boehner spokesman Brendan Buck noted that unlike the Democratic-led Senate, the Republican-led House has already passed legislation to prevent student loan interest rates from spiking on July 1.

"It's obvious that the White House would love nothing more than to change the subject from its growing list of scandals, but scheduling this PR stunt reeks of desperation," Buck wrote on the Speaker's blog, noting the similarities in the two loan proposals. "Picking a fight out of thin air where there's policy agreement isn't going to get the White House out of trouble, and it certainly doesn't do anything to help students facing a looming rate hike."

First, there is no list of White House scandals -- the total is still zero. Second, the deadline matters to millions of families, so there's no point in dismissing it as some kind of partisan distraction. And third, there isn't policy agreement on student loan interest rates, as even the Speaker's office should understand.

Let's back up and provide some context here. As we discussed several weeks ago, Congress passed a law in 2007 that kept the interest rate for federal Direct Stafford Loans at 3.4%. Last year, that law was set to expire, and without congressional action, the rate would have doubled, affecting more than 7.4 million students, who would have faced, on average, an additional $1,000 in debt.

Policymakers eventually reached a deal and the lower rate was locked in, but it was temporary -- on July 1 of this year, the rates are set to double again.

House Republicans say they've already passed a bill on this, which is true. They also say their bill is worthwhile and consistent with White House demands, which is not true.

Obama's approach and the GOP's bill do have one thing in common: they tie student-loan interest rates to the yield on 10-year Treasury bills. But the White House's proposal includes all kinds of safeguards to make things easier on young people, including fixing the rate to whatever it is when the loan is first taken out (so students wouldn't suddenly see a spike when T-bill yields change) and shielding borrowers from having to make more than 10% of their income.

House Republicans are comfortable with the Treasury bill condition, but ignored the White House's proposed safeguards. Why does this matter? Because while the yield on 10-year Treasury bills is currently very favorable, this won't last forever, and Obama sees the safeguards as providing a cushion for young people going forward.

Meanwhile, Senate Democrats are slowly coalescing around a plan from Sen. Elizabeth Warren (D-Mass.), which would tie student loan rates to the rate big banks get through the Federal Reserve discount window. Republicans are, not surprisingly, hostile to the idea, but as of last week, Warren's bill had eight cosponsors.
MSNBC (Rachel Maddow)

Latest Activity: May 31, 2013 at 3:44 PM

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Funkentelecky commented on Sunday, Jun 02, 2013 at 19:01 PM

Rachel Maddow is an opinion show and as of today Bill O'Reilly is the most balanced of all opinion shows. He don't give Republicans or Democrats a pass on anything; however if you really believe in truth and justice for all you need to check out some real journalism with Bret Baier at 6pm M-F on Fox and also 9a-5p for even more journalism, no hate whatsoever.

Right over wrong is always better than Republican over Democrat or vice versa.

PoliticsNation commented on Sunday, Jun 02, 2013 at 19:05 PM

I expect the Republicans to lose seats. Their plan- to continue bashing the POTUS and his administration is going to back fire...people are more concerned with the way things are shaping up than the GOP daily gossip column.

PoliticsNation commented on Sunday, Jun 02, 2013 at 19:13 PM

MSNBC ratings are down but it had a lot to do with the latest trials and people tuning into Fox for the so called Obama scandals. CNN is up because they spent a lot of air time on the murder trial. HLN is number 1 because they focus on reality/entertainment news. I expect MSNBC to pick ratings up this month.

Funkentelecky commented on Sunday, Jun 02, 2013 at 20:26 PM

PN, I grew up a Democrat and JFK tops my list from that party. No one in the Democrat party is like him at all today. Bill Clinton is the closest and I give him high marks in regards to economic leadership and his theory of triangulating with Republicans which lead to American prosperity. Remember the quote” Keep your friends close and your enemies closer” that’s why I watch MSNBC and CNN and Fox so that I may be informed to the best of my ability. Why don’t you try Brett Baier out every once and a while, if you believe in the truth you will find skepticism there, no hate. And since you like ratings, check out these to boot.


Funkentelecky commented on Sunday, Jun 02, 2013 at 21:09 PM

Pn, is this blowing smoke too?


Pn, Chris Matthews is on point here about the IRS why don’t you listen to him?


HMJC commented on Monday, Jun 03, 2013 at 08:39 AM

PN, not sure why you still think the current administrations hands are clean? If it smells like poo poo, it's poo poo, and there has been a whole lot of poo poo coming out of the white house the last three months.

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