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Republicans Block Passage of Bill Allowing Refinance of Student Loans (Afro Reports)
Afro ^ | June 14, 2016 | Zenitha Prince

Posted on 06/16/2014 6:46:45 AM PDT by YourAdHere

For the millions of Americans encumbered with college debt, relief was snatched away this week when Capitol Hill Republicans blocked measures that would have allowed borrowers to refinance their loans.

House and Senate Republicans on June 11 stymied progress of the Bank on Students Emergency Loan Refinancing Act, which would have allowed borrowers with college loans issued prior to 2010 to refinance at 3.86 percent—the rate established by Congress last year.

The White House, which supported the legislation, said the bill could have allowed an estimated 25 million student loan borrowers to save an average of $2,000 over the life of their loans. The measure would have been paid for by enforcing the Buffet rule—closing tax loopholes for the very rich.

“This should be a no-brainer,” President Obama said June 9 during a press conference to announce executive actions to make college more affordable. “It would be scandalous if we allowed those kinds of tax loopholes for the very, very fortunate to survive while students are having trouble just getting started in their lives.”

Sponsors of the bill said they had received bipartisan support, but Republicans seemed to balk at the means of finance.

“Today is a really good day for billionaires,” Sen. Elizabeth Warren (D-Mass.), one of the sponsors of the bill, said at a press conference after the vote. “For the more than 40 million people dealing with student loan debt it wasn’t such a good day.”

“The Republicans have said they don’t like how it being paid for—closing tax loopholes on millionaires and billionaires,” she added. “If they have an alternative plan then bring it forward. That’s what we’ve asked for.”

“We’re not giving up,” she said. “Homeowners are refinancing. Small businesses are refinancing. We just want young people who got an education to have their shot.”

The legislation was introduced amid growing public concern about the toll of student loans on the economy.

Over the past three decades, the average tuition at a public four-year college has more than tripled, while a typical family’s income has barely moved. As costs rise, more students than ever are relying on loans to pay for college. Today, 71 percent of those earning a bachelor’s degree graduate with debt, which averages $29,400 per student. Outstanding student loans now total more than $1.2 trillion, surpassing total credit card debt, according to a White House report.

On June 9, President Obama signed an executive order that allows about 5 million more borrowers—those who took out loans before 2007—to cap their monthly payments at 10 percent of their incomes, among other measures intended to address the problem.

“At a time when higher education has never been more important, it’s also never been more expensive,” Obama said. “If somebody plays by the rules, they shouldn’t be punished for it.”


TOPICS: Culture/Society; Foreign Affairs; Government
KEYWORDS:
No mention on the Afro of Iraq or our borders, but this is championed as the lead story.
1 posted on 06/16/2014 6:46:45 AM PDT by YourAdHere
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To: YourAdHere

Privatize the Federal Student Loan Give-Away Program.


2 posted on 06/16/2014 6:49:12 AM PDT by Graewoulf (Democrats' Obamacare Socialist Health Insur. Tax violates U.S. Constitution AND Anti-Trust Law.)
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To: YourAdHere

So people that actually produce wealth and jobs should turn over more of their money to the governmant in order to allow the college industrial complex to charge 3x what it used to in education kids. These morons signed the deal...let them pay it off on the terms they agreed to.


3 posted on 06/16/2014 6:49:34 AM PDT by icwhatudo (Low taxes and less spending in Sodom and Gomorrah is not my idea of a conservative victory)
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To: YourAdHere

The millionaires and billionaires are responsible for how many of the jobs in this land? Oh, but let’s not get confused by the facts.


4 posted on 06/16/2014 6:50:24 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: icwhatudo

Yup, follies.


5 posted on 06/16/2014 6:51:13 AM PDT by HiTech RedNeck (Embrace the Lion of Judah and He will roar for you and teach you to roar too. See my page.)
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To: YourAdHere

Another Brilliant Big Gov Idea

Extort tax money from working people, many of whom could not afford college themselves, to finance liberal colleges via Big Gov subsidized student tuition.


6 posted on 06/16/2014 6:53:53 AM PDT by Iron Munro (The Obamas' Black skin has morphed into Teflon thanks to the Obama Media)
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To: Graewoulf

$2000 over the life of the loan? Man, that’ll really cut into those welfare/disability checks.


7 posted on 06/16/2014 6:54:21 AM PDT by freeangel ( (free speech is only good until someone else doesn't like it)
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To: YourAdHere
“Today is a really good day for billionaires those who actually produce wealth and jobs,” Sen. Elizabeth Warren (D-Mass.)

There you go, Lie-a-watha. Fixed it for ya. You're welcome.

8 posted on 06/16/2014 6:54:34 AM PDT by ScottinVA (If it doesn't include border security, it isn't "reform." It's called "amnesty.")
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To: YourAdHere
Make student loans dischargable in bankruptcy.

Make the colleges co-signers to the loans. If they graduate somebody who can't get a job with the education they gave them, the college eats the loan.

This will make colleges more selective about who they admit, and shut down majors with a poor record of producing employability.

9 posted on 06/16/2014 6:59:08 AM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: PapaBear3625

HMM, I never got a job from no poor person !


10 posted on 06/16/2014 7:08:25 AM PDT by bicyclerepair (The zombies here elected alcee hastings. TERM LIMITS ... TERM LIMITS)
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To: YourAdHere

These kids need their degrees in Classical Studies and 12th. century Tibetan poetry. The better too be educated greeters at WalMart.


11 posted on 06/16/2014 7:11:47 AM PDT by SkyDancer (If you don't read the newspapers you are uninformed. If you do read newspapers you are misinformed)
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To: YourAdHere
--“Today is a really good day for billionaires,” Sen. Elizabeth Warren (D-Mass.)

Wise words from a multimillionaire who's net worth is somewhere north of $14M. Nice pile of wampum, there, Liawatha!

12 posted on 06/16/2014 7:20:44 AM PDT by JPG (Yes We Can morphs into Make It Hurt.)
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To: JPG

True that.


13 posted on 06/16/2014 7:21:59 AM PDT by YourAdHere (I flip off all Obama bumper stickers.)
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To: YourAdHere
For the millions of Americans encumbered with college debt,

Yeah, let's be all concerned about Americans having to pay for a loan they voluntarily took out, but not worry about how they will pay for involuntary Obamacare.

14 posted on 06/16/2014 7:28:29 AM PDT by Right Brother
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To: YourAdHere
Sen. Elizabeth Warren (D-Mass.), one of the sponsors of the bill,

Proof how far this country has fallen.

15 posted on 06/16/2014 7:32:10 AM PDT by exit82 ("The Taliban is on the inside of the building" E. Nordstrom 10-10-12)
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To: Right Brother

Excellent point.


16 posted on 06/16/2014 7:36:58 AM PDT by YourAdHere (I flip off all Obama bumper stickers.)
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To: YourAdHere

You’ll notice they don’t get specific with the “loopholes” which means they probably won’t provide that much money or they didn’t apply to just the billionaires.


17 posted on 06/16/2014 7:37:06 AM PDT by AppyPappy
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To: PapaBear3625

Great ideas.


18 posted on 06/16/2014 7:40:36 AM PDT by Mercat
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To: YourAdHere

Anyone can refinance any debt any time they want, and no new laws are needed to do so.

Just take out a bank loan to pay off the debt, all it requires is being credit worthy.


19 posted on 06/16/2014 7:42:48 AM PDT by Beagle8U (Unions are an Affirmative Action program for Slackers! .)
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To: YourAdHere

Local news coverage of this appeared to consist of anchors reading a handout from the DNC.


20 posted on 06/16/2014 7:45:29 AM PDT by Buckeye McFrog
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To: YourAdHere

Apparently Stafford Loans are going as high as 7% this year. I didn’t realize how lucky I was to have one at 3.625.


21 posted on 06/16/2014 7:45:37 AM PDT by A_perfect_lady
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To: YourAdHere

Save $2,000 over the life of the loan!? What a joke!


22 posted on 06/16/2014 8:32:20 AM PDT by SgtHooper (This is not my tag!)
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To: PapaBear3625

Not the first, but the second.


23 posted on 06/16/2014 8:33:19 AM PDT by SgtHooper (This is not my tag!)
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To: SgtHooper

Exactly.


24 posted on 06/16/2014 10:13:48 AM PDT by YourAdHere (I flip off all Obama bumper stickers.)
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To: YourAdHere
“If somebody plays by the rules, they shouldn’t be punished for it.”

If only he thought that way about illegal immigration.

25 posted on 06/16/2014 10:15:04 AM PDT by Colonel_Flagg ("Compromise" means you've already decided you lost.)
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To: Colonel_Flagg

Fantastic point, Colonel.


26 posted on 06/16/2014 10:58:08 AM PDT by YourAdHere (I flip off all Obama bumper stickers.)
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To: YourAdHere
“If somebody plays by the rules, they shouldn’t be punished for it.”

Rules are, you agree to the loan then you pay it back. Them's the rules. No punishment for playing by the rules, just for breaking them. Obama is an idiot, more so than most idiots.

27 posted on 06/16/2014 2:47:38 PM PDT by roadcat
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To: SkyDancer
These kids need their degrees in Classical Studies and 12th. century Tibetan poetry. The better too be educated greeters at WalMart.

Wise words! Long ago when I attended college, I had a paying job to tutor math to students having problems. They were taking algebra, geometry and trigonometry but they didn't understand basic arithmetic! I spent most of my time teaching them math basics they should have learned in middle school. No business being in college, but they wanted to be there since they were told they need a degree.

I see the same thing now. Kids want a degree, but don't have the prerequisite knowledge to study at the college level. Hence they gravitate towards a useless field of study. These kids should just hit the job market and skip college, and not waste money on a college loan. In time, as they mature they can decide whether to attend classes to further their career. I have several nieces and nephews who wasted time in college for many years, a couple of them with large loans that are sinking their broke parents.

28 posted on 06/16/2014 3:20:18 PM PDT by roadcat
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