–Senate Majority Leader: Sees Movement Toward Bipartisan Deal
–Sen. Reid: Both Sides Are ‘Compromising’ In Student Loan Talks
–Sen. Reid: Obama Should Submit ‘Consensus Nominee’ To Replace Bryson

By John Shaw

WASHINGTON (MNI) – Senate Majority Leader Harry Reid said Thursday
he believes negotiations on a compromise student loan bill are making
good progress and an agreement is possible.

“We have great hope we can get it done,” Reid said at a briefing
with the Senate Democratic leadership.

Reid said he is especially hopeful because both House Speaker John
Boehner and Senate Minority Leader Mitch McConnell seem interested in an
agreement on the matter.

“They are compromising as are we,” Reid said.

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.

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

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

Reid has said that extending the student loan interest rate
reduction is important to seven million students and should be paid for
by ending a tax break for S corporations.

As the scheduled interest rate increase on July 1 nears, lawmakers
from both parties have begun to actively explore compromise proposals to
fund the package.

Lawmakers from both parties have begun to actively explore
compromise proposals to fund the package.

Speaking earlier in the day, McConnell blasted Obama for failing to
work for an agreement on the student loan legislation, charging that he
has been using the stalemate to score political points.

McConnell said the GOP has offered “multiple” options to resolve
the issue.

“He has yet to offer a concrete solution,” McConnell said about
Obama.

On another matter, Reid said that he hopes Obama sends to the
Senate a “consensus nominee” to become the next Commerce Secretary in
the aftermath of the resignation of John Bryson.

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

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