–Senate Majority Leader: GOP Should Allow Full Debate On Funding Plan
–Sen. Reid: Willing To Vote On Alternative Plans
–Senate Minority Leader McConnell: Student Loan Accord Is Doable
–Sen. McConnell: Student Loan Fight Is A ‘Manufactured Controversy’

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid and Senate
Minority Leader Mitch McConnell Tuesday continued to squabble over how
to pay for a bill that would prevent a scheduled increase in some
interest rates on student loans from going forward.

In back to back remarks to reporters after party luncheons, Reid
and McConnell said there is an agreement on the need for legislation to
extend the reduced interest rates on student loans, but added there is a
continuing dispute over how to pay for the package.

Speaking first, McConnell said the battle over student loan
interest rates is pointless.

“This is a manufactured controversy,” McConnell said.

“This is a place where he agree on the outcome,” McConnell said,
said adding that the issue “cries out for bipartisan compromise.”

“We all agree we’re not going to let the interest rates go up,”
McConnell said.

“We should sit down and negotiate a way to pay for it,” McConnell
said.

Reid said he is skeptical that the GOP supports the student
interest rate bill, dismissing their statements of support as “only
talk.”

“It’s all for show,” he said, referring to Senate GOP expressions
of support.

Congress passed a bill in 2007 that was signed by President Bush to
temporarily reduce the interest rate on subsidized Stafford loans to
college undergraduates from 6.8 percent to 3.4 percent.

That interest rate decrease is set to expire July 1. Extending the
interest rate reduction would cost $6 billion for one year.

President Obama has called for legislation extending the interest
rate reduction to 3.4 percent.

House Republicans passed legislation several weeks ago that extends
the student loan interest rate reduction for another year and pays the
$6 billion cost by tapping funds from prevention and public health
programs that were established by the 2010 health care law.

Reid has said extending the student loan interest rate reduction is
important to 7 million students and should be paid for by ending a tax
break for S corporations which he said would “close a long, long overdue
tax loophole.”

The Senate held a procedural vote at noon Tuesday on formally
beginning debate on the bill. The motion to take up the legislation
required 60 votes, but it only secured 52 votes.

Reid said he is willing to schedule votes on various proposals to
pay for the bill. “Let’s vote on them,” he said.

** MNI Washington Bureau: (202) 371-2121 **

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