The GOP-led House passed a bill yesterday that would allow interest rates on student loans to remain at the current 3.4% fore another year. The rates are scheduled to go up in July and would add a significant amount onto each student loan.
Democrats overwhelmingly voted against the bill and Obama has threatened to veto it if it came to him because the GOP wants spending cuts to pay for while the Donks want tax increases (is there any option to them but to raise taxes). The spending cuts the GOP wants are to a program Obama himself has tried to cut to cover parts of Obama care:
Republicans noted that many Democrats had voted earlier this year to take money from the preventive health fund to help pay to keep doctors' Medicare reimbursements from dropping. Obama's own budget in February proposed cutting $4 billion from the same fund to pay for some of his priorities.
In an obvious slap at President Obama, the Republican-controlled House voted Friday to extend the lower rate by slashing $6 billion from a fund created by the health-care-reform law for breast and cervical cancer screenings, child immunizations, and prenatal tests for birth defects.
Update: The Inquirer printed my letter to the editor on Wednesday:
In the front-page story “House acts to curb loan rates” (Saturday), readers were informed that House Republicans passed a bill that would keep student loan rates at 3.4 percent for another year. The GOP wants to pay for the cost with spending cuts on a medical-screening program. According to the story, this exact program was targeted for cuts by President Obama in his budget proposal and by congressional Democrats to help ensure that Medicare reimbursements were not allowed to drop.
Yet, a few pages later in the newspaper, the Editorial Board skewered the GOP for insisting on cuts to the very same program that the Democrats and Obama had tried to trim. Nowhere in the editorial does it mention the Democrats’ proposed cuts. I guess the claim that “GOP Aims to Cut Cervical Cancer Screening Program” has more punch than “President Obama and Congressional Democrats Aim to Cut Cervical Cancer Screening Program.”