Administration, GOP Leaders Debate Interest Rates
The deadline for the upcoming increase in the interest rate on student loans is quickly coming to the forefront of Obama’s focus. It’s an issue that is escalating because of the repercussions that students may experience as a result of a Congress that is stalled by idealism from both parties. More recently, Obama called out Congress while speaking to students in the East Room. He said, “This issue didn’t come out of nowhere. It’s been looming for months. But we’ve been stuck watching Congress play chicken with another deadline.”
The deadline is now ten days away and Obama encouraged the students to push Congress. “Keep telling Congress to do what’s right to get this done,” he said. While both parties agree that the interest cannot go up due to a lagging economy, there seems to be an ongoing battle as far as the details of this legislation.
GOP leaders have raised concerns over how Obama plans to pay for the $6 billion in subsidies for Stafford loans. They also claim that their plans have not even been considered as a viable plan and instead Obama is resorting to mere talk and no real movement.
Minority Leader Mitch McConnell (R-Ky.) said “For the president, this is just another sad example of his election year strategy of deflection and distraction.” This comes after the admistration’s constant attacks on members of Congress.
If this doesn’t go through, 7.4 million students will be affected and the interest rate will go from a measly 3.4 percent to 6.8 percent soon after. This is not good news for students who are already struggling financially and most families are in no good position to make higher payments that would only reduce their net income.
If the solution does not come to fruition it may be catastrophic at most and burden families at least.