Politics
Obama to focus on student loan program
U.S. President Barack Obama signing transportation bill that would also prevent interest rates on student loans from doubling. July 6, 2012. PHOTO/Getty Images
The government’s subsidized student loan program, a marquee issue for President Barack Obama last year as he courted young voters on the campaign trail, is back on the White House agenda one month before a scheduled interest rate increase. But Obama’s push to avoid the increase is far more low-key than it was in the election year.
Obama will host college students Friday at the White House as he calls on Congress to keep the rates from doubling on July 1. But faced with a similar deadline, Obama by this time last year had launched a full-throated campaign to pressure Republicans to act, delivering speeches at college campuses and high schools in presidential battleground states.
Congress eventually extended the rate for one more year. Obama and his aides often point to their effort as an example of how they can mobilize the public to force lawmakers to act.
This year, Obama has been less confrontational, proposing a student loan plan in his budget and waiting to see what developed in Congress.
Last week, the House passed legislation that would link the rates the financial markets by pegging them to fluctuations in 10-year Treasury notes. The White House threatened to veto it if that’s the version that lands on his desk. The Senate has yet to act.
Obama’s proposal also would link the rates to the financial markets — a step opposed by many liberals. But Obama’s plan, unlike the Republican proposal, would lock in the rates for borrowers.
The Republican plan would set a cap. “While we welcome that House Republicans have paid some attention to this issue this year, their proposal unfortunately does not meet the test,” White House spokesman Jay Carney said Wednesday.
