Earlier today, the House voted 215-195 to extend the reduced interest rates (from 6.8% to 3.4%) for Stafford undergraduate loans( HR 4816). They will pay for the cost with repeal of the Prevention and Public Health Fund established under Obamacare. As always, the $6 billion cost of the extension for one year will be offset over…10 years. Democrats opposed the bill because it eliminated an Obamacare program, and that’s why the bill passed with such a low threshold.
This bill is a travesty. While everyone is focusing on the $6 billion cost to the government, they forget about the cost to the free market. It is these very subsidized loans that are creating astronomical inflation in the higher education by encouraging universities to continue raising their prices in return for more government bacon. As far as the spending offsets are concerned, we all know how this will end. The Senate will threaten to pay for it with tax increases, Republicans will balk, and we will get the extension without the spending cuts.
Here are the 30 Republicans who voted against more inflation and government involvement in higher education. Also, a special kudos to Rob Woodall (R-GA) for being the only Republican to speak against it on the floor:
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