–Senate Majority Leader Accuses GOP Of Blocking Funding Plan
–Sen. Reid: GOP Engaging In ‘Needless Filibuster’ on Bill
–Senate Minority Leader McConnell: Accuses Dems of ‘Cyncial’ Ploy
–Sen. McConnell: Senate Dems Are Focused on Obama’s Reelection

By John Shaw

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

In back to back remarks on the Senate floor, Reid and McConnell
supported legislation to extend the reduced interest rates, but clashed
on how to pay for the package.

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% to 3.4%.

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%.

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

Reid 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.

Reid accused Republicans of engaging in a “needless filibuster” in
their determination to protect “wealthy tax dodgers.”

In response, McConnell said the Democratic funding proposal is a
“cynical election year strategy.”

McConnell said the Senate Democratic legislative agenda has become
little more than an “extension of the Obama campaign.”

McConnell hammered the president for the weak economy that is
making life difficult for college students.

“It’s his economy now,” McConnell said.

The Senate will hold a procedural vote at noon Tuesday on formally
beginning debate on the bill. The motion to take up the legislation will
require 60 votes and is likely to fail.

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

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