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Senate Democrats push student loan bill

Obama Student Loans

WASHINGTON (AP) - Democrats are keeping up their election-year drumbeat on student loan rates, scheduling a Senate vote to debate legislation allowing students to refinance their debt at lower rates.

Republicans say it's a political gimmick that would raise taxes without addressing the real causes of rising student loan rates.

Without GOP backing the bill is unlikely to get the support needed to advance Wednesday. But the debate allows Democrats to showcase steps aimed at helping the middle class this election year.

The move by Senate Democrats comes after two days in which President Barack Obama made student loans a focus and announced executive action to limit how much certain student borrowers would have to pay.

The administration says the bill by Sen. Elizabeth Warren, D-Mass., could help 25 million borrowers and save the typical borrower $2,000 each over the life of the loan. It allows borrowers to refinance at today's rates. The bill is paid for by using the so-called Buffett Rule, which sets minimum tax rates for people making over $1 million.

Majority Leader Harry Reid, D-Nev., said student loan debt is approaching $1.3 trillion. "More than car loans, more than credit card debt. It's something that is really overwhelming and overburdening the American people," Reid said.

Sen. John Thune, R-S.D., said the bill wouldn't do anything to lower education costs or reduce borrowing.

"This is a bill that purely and simply is an election-year bill that allows them to check a box," Thune said. "And what we need to be focused on are not political gimmicks, but jobs."

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albatroll June 11 2014 at 5:56 AM

nerobama and his cronies are presiding over a terrible economy. Instead of looking for ways of reducing barriers and taxes that stifle job creation, they are pandering to low information voters. Why does the administration push college as the answer to a successful future for everyone? A lot of under qualified and under educated high school "graduates", enroll in college then drop out. They should have been steered into a trade school or apprentice program. Everyone can't wear a suit to work every day. This is another burden being shifted from the ill-responsible borrower, to the working taxpayer. Time to put an end to the socialist/communist policies being pushed by lenin-bama.

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9 replies
syd June 11 2014 at 8:11 AM

My GOD! Some of you have gone completely insane with the Obama hatred. Please, get some help! He's trying to help ease repayment difficulties for students and low and behold, some you nutters and the Republican crazies in DC are picking it apart. And who didn't expect this typical "nothing Obama does we will support" response. It really has become old, worn out and irritating. The student loan crisis didn't start with Obama but at least he and the Democrats are trying to do something as apposed to Republicans only whining, complaining and blocking.

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15 replies
trooperl3 June 11 2014 at 7:31 AM

How is it Obamas fault this has been going on for years, Wake up be part of solution not blaming Obama for everything, the easy way out .and last I looked economy wasn't that bad. stock market etc..

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6 replies
DEAN KRYSTEK June 11 2014 at 7:16 AM

Sure it's a gimmick...college students are part of the entitlement society which depends on the government for many things. It's not addressing the real issue: the cost of education, for the return on your investment is simply not worth the end result. Yes, degrees are necessary to for certain professions, but the average schlunk is going into debt for a lifetime because he or she thinks they need a degree to compete for the same job at McDonalds. If going to college meant a better job afterward, fine...but look what's out there for these students. They're competing against jobs that are far below the so-called qualifications they earned by getting a degree.

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2 replies
d1anaw DEAN KRYSTEK June 11 2014 at 10:50 AM

Sounds like someone who doesn't like people who have an education or intellect. Typical Bush era student.

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5 replies
Hi RON DEAN KRYSTEK June 11 2014 at 4:43 PM

So What????? Many of us flipped burgers for a while before we landed a decent job!! So, you want to make them CEO's right away --------------------- Let them earn it - in the end - it will be better for them as well to know all aspects of making a living!! Knock off this liberal give away stuff- that is NOT the way to keep our America strong !

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1 reply
hanlon1212 Hi RON June 11 2014 at 11:17 PM

Look out , here comes the Psych Nuse -- ByRon .

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Pastor Ric June 11 2014 at 8:05 AM

Of course the right are going to call it a "gimmick"... it benefits everybody but their elitist 1% financial base... but what I find less than amusing is that even after it was revealed that the student loan industry was abusing men and women in our military, the lame-brained STILL blame the one President with the guts to stand up for them? So, which is it... racism or just a Kool-Aid addiction?

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8 replies
kimberley June 11 2014 at 8:21 AM

My student loan payments have been modified in a myriad of ways since I graduated in 2007. Nelnet has lowered my payments to coordinate with my income level, have granted forbearance and have deferred payment too throughout my loan payment history. The bill that BO is suggesting isn't anything new, its not earth shattering and it is not going to address the real issue....higher tuition rates. Just another gimmick that is getting a lot of attention for nothing.

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3 replies
Freddie June 11 2014 at 7:51 AM

Having retired after working for a major corporation for 28 years, and working prior to that, I decided, after 3 years, to look for a job. Customer service jobs that pay 12-15 per hour require a degree. Support a family for young people on 12-15 per hour, difficult, but do able. But to pay for a college degree with that same 12-15 an hour, impossible. College isn't always the way to go. What about people that worked while going to college, rather than partying at school, and on spring break. They were responsible, and graduated with little or no debt. Or parents that put aside a few dollars each week to ensure their kids had the opportunity to attend school, paying at least part of their kids education? There will always be takers, people that think just because college is there, that it should be for free. Wrong, Teach your kids that if they want something, they can earn it. Yes, some professions require that degree, teachers, lawyers, doctors. But not customer service jobs.

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6 replies
rjen164497 June 11 2014 at 6:17 PM

Elizabeth Warren The Senator from Massachusetts is a Communist, from the Socialist Republic of Cambridge Massachusetts. She worked at Harvard University as a minority professor claiming to be part Native American. It was later proven she has no indian blood. She was hired at Harvard as a favor to Barack Obama. She is one the 1% wealthy but claims she is poor. Her home is worth 3 million. She has the same Communist beliefs as Fidel Castro.

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3 replies
wbearl June 11 2014 at 7:55 AM

Typical Liberal Solution, throw money at it. Let's don't go after the cause of High education costs, let's throw more money at it. The list of reasons college cost so much is a very long one, top of that list are Tenured Professors who only have to spend 4 hours a week in class and have Teaching Assistants to do most of their work, but pull down 6 digit salaries. You make it easier to get loans or get out of paying them, and then we the tax payer (or those of us who pay taxes) will have to pick up the tab. When colleges don't have to worry about their income, they can spend (waste) even more money.

For those out there trying to compare our education system to others, please, let's do it. That means starting to test our kids in high school to see if they go on to the next grade or just get out. That means ending some kids paid education as early as 9th or 10th grades. Of course then we can also enjoy those countries high unemployment and low incomes. I worked for a Canadian Company. Canada graduates so many college kids, that companies hire them at minimum wage and treats them like Walmart does.

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4 replies
jimbon88 June 11 2014 at 10:19 AM

This bill is another socialist attempt at wealth redistribution. It taxes the wealthy to pay for the college loan shortfalls due to the legislation. Why are the socialists so envious of anyone that works hard and does well in this country?? No poor person ever signed a paycheck or hired people. This is another sleazy Democratic trick to lure the young voters into voting for Democrats in the next election.

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2 replies
esword2020 jimbon88 June 11 2014 at 6:07 PM

ur a rabid rep.you dont understand what the word united stands for,y0u make me sick

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cbza3600 jimbon88 June 11 2014 at 6:21 PM

so you must be for the immediate end of our socialist military, then, huh jim?

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1 reply
lemmdemm cbza3600 June 11 2014 at 11:07 PM

Pssst! It's a VOLUNTEER Military and it is being decimated by this Administration. You can find a socialist Military in North Korea. But it may be coming to a Post near you (and it won't be a volunteer Military)

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