Politicizing Student Loans With Deadline Looming...What's New?

gocollege.com

Did anyone really think that this Congress and this Administration could leave politics out of the Student Loan extension?  Wishful thinking if you did.  Congress phased in the lower loan rate of 3.4% in 2007 for undergraduates.  This lower rate is in jeopardy of reverting back to the 6.8% rate beginning in July.  Failure of Congress and the Administration acting in unison will add an estimated $1,000 in increased loan debt for each student. 

Obviously, both parties in this fight do not want to see the loan rate go back up.  Neither want to be blamed by students or their parents for an increased debt obligation.  However, both parties choose to bicker about how to pay for the reduced student loan rate.  The lower rate is estimated to cost $6 billion. 

Republicans immediately try to find a way to carve away at provisions of the Affordable Healthcare Act finding savings there.  A non-starter for the Democrats.  Democrats want to eliminate specific tax benefits for small business owners to pay for the lower student loan rate.  A non-starter for the Republicans.  Both parties blame each other and of course, the politics of Washington take over.

edudemic.com

Posturing on any political issue is par for the course.  The President has made a point to include the student loan issue on the campaign trail effectively casting the net of blame on the Republican Party.  Republican Congressional leaders say the matter could be resolved if the President didn't want to use it as a campaign issue driving up support among young voters.

Like most of the issues before Congress, paying for them is the dilemma.  The Republicans always want to cut programs, benefits and services that are near and dear to the Democratic Party.  The Democrats always want to place a larger burden on the wealthier taxpayer or business concern unacceptable to the Republican Party.  These more difficult economic times only enhance these entrenched positions that both parties adhere to. 

Every issue of our time involves the political posturing, the rhetoric of blame and the unwillingness to find a negotiated compromise.  All the while the American people wait and wonder what will happen for them.  This Congress will undoubtedly be long remembered as the Congress that accomplished very little other than expanding the polarization between the two parties and the American people.

No worries though.  The Student Loan crisis will be averted at the 11th hour just like so many other decisions this group of legislators have provided.  One of these days the old axiom of throwing the bums out will come to fruition and maybe, just maybe then, we will have a legislative body that actually listens to the concerns of the American people.