Despite the fact that Republicans and Democrats actually agree that student loan rates shouldn’t increase, they still manage to disagree—on how the problem should be solved. Two partisan bills have been blocked by the Senate, indicating that on July 1st, rates may double. This would add $1,000 in payments per year for students with Stafford loans.
Partisanship has been the bane of President Obama’s attempts to progress on platform issues in his campaign. When the President announced his stand Friday, looking for lifelong fixed rates on student loans, TakePart.com reports there was immediate controversy.
“I mean, come on,” said Brendan Buck, spokesman for House Speaker John Boehner (Republican). “The White House would no doubt love to change the subject from all of its various scandals, but trying to pick a fight over a plan that mirrors the president’s own, giving him a ‘rare win,’ is pretty pathetic.”
The Republican plan, passed by the House, proposes rates be reset yearly based on financial markets. Of course, as the economy recovers and financial markets grow, rates would inevitably rise, and Democrats look to prevent any increases.
“A proposal that increases the debt load of students and families is no solution at all,” said Representative George Miller (Democrat) in a statement before the vote according to Reuters.com.
Both sides generally agree that forcing graduates to take on more debt decreases contributions to the economy in a time when economic growth is paramount. Pictured below is the warning soon-to-be-graduates receive regarding loan repayment.