House Speaker John Boehner (R-OH) aggressively criticized President Obama and Democrats on Thursday over student loans, accusing them of “picking a fake fight” and employing a “cynical political strategy.”
Boehner pointed out that the House-passed GOP plan “mirror[s] what the president has called for” in averting a student loan interest rate spike on July 1. Both proposals tie the rate to the 10-year Treasury yield, although Obama’s plan has more safeguards to protect students from debt burdens, in part from market fluctuations.
Obama has threatened to veto the GOP’s plan and has instead sided with congressional Democrats’ different proposal to freeze the existing 3.4 percent for two years and pay for it by closing unpopular tax loopholes. One key element of the House Republican plan that the White House opposes is to let interest rates fluctuate for the life of a loan, which even Senate Republicans have rejected in their version.
The Speaker accused Democrats of having “decided to deliberately allow rates to rise on students and families after July 1.” He observed that Senate Democrats were not able to pass their plan, although that’s because Republicans filibustered it — the plan received 51 votes to move forward in the chamber.
House Democrats are trying to force a vote on their legislation.
