By Josh Richman
Democrats are running hard with the student-loan issue, including some efforts here in the Bay Area.
The interest rate on need-based student loans will double to 6.8 percent July 1 unless a law is passed. Both sides of the aisle appear to favor freezing the interest rate, yet each side is using the question of how to pay for it against the other as a political issue.
The House last week passed Republicans’ HR 4628 to maintain the rate at 3.4 percent for another year, paid for by eliminating the Prevention and Public Health Fund created by the Affordable Care Act health care reform law. Democrats say the GOP has set up a false dilemma by cutting flu vaccines, cancer and heart disease screenings and other services for children and families.
The White House has threatened a veto, but the bill isn’t expected to get past the Democrat-controlled Senate, anyway. Majority Leader Harry Reid, D-Nev., has introduced S.2343 to pay for freezing the interest rate by making it harder for owners of so-called S corporations to avoid paying Social Security and Medicare payroll taxes on some of their earnings.
The Senate might consider Reid’s bill Monday, so politicians are hitting the streets and phones to drum up support.
Rep. Barbara Lee, D-Oakland, will be joined by UC Berkeley Chancellor Robert Birgeneau, Mills College President Alecia DeCoudreaux, Holy Names University President William Hynes, and Cal State East Bay President Leroy Morishita for a news conference tomorrow morning at Cal’s Haas Pavilion.U.S. Sen. Barbara Boxer, D-California, will address this and other issues during a conference call tomorrow with reporters.
And Rep. Zoe Lofgren, D-San Jose, will attend a rally Thursday morning at San Jose State University with local students who’ll discuss how the interest-rate increase would affect them. An estimated 7.4 million students nationwide, including more than 570,000 in California, would pay an average of $1,000 more over the life of their loans.