Entries in Stafford Loans (3)


Obama Ad Tells Romney to ‘Get Real’ on College Aid

JIM WATSON/AFP/GettyImages(WASHINGTON) -- The Obama campaign opened a new line of attack on Mitt Romney in its latest swing state TV ad, seizing on the Republican’s approach to financing higher education.

The 30-second spot says Romney wants to cut federal college aid for millions of students and encourage them to go into debt, replaying several times this line from a March speech at Otterbein University:  “Take a shot, go for it, take a risk, get the education, borrow money if you have to from your parents, start a business,” Romney said.

In response, says the Obama ad’s narrator:  “Get real, Mitt.”

Obama is portrayed positively for doubling funding for Pell grants and capping repayment rates for some federal student loans in his first term.

In response to the ad, the Romney campaign pointed to the rapidly rising college costs and levels of student debt over the past three and a half years.

“Under President Obama, the costs of college have skyrocketed – making it more difficult for students to attend college – and his economic policies have made it harder for graduates to get jobs,” said Romney spokeswoman Amanda Henneberg.

“Mitt Romney will encourage innovation and competition to make college more affordable, and his economic policies will give recent graduates the job opportunities they deserve,” she said, highlighting a contrast between the candidates on how to help more young people afford college.

The ad — dubbed “Get Real” — begins airing today in Colorado, Iowa, Nevada, Ohio and Virginia.  It’s the Obama campaign’s third TV spot on higher education, but first on education to mention Romney.

Copyright 2012 ABC News Radio


Student Loan Deal Taking Shape on Capitol Hill

Alex Wong/Getty Images(WASHINGTON) -- Congress is starting to see some light at the end of the student loan impasse tunnel.

Both the Democratic and Republican leaders in the Senate Tuesday announced that a deal is almost complete to avoid student loan rates from doubling on July 1. The deal, which both Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., announced Friday, is contingent on the House Republican leadership getting their members on board.

“We are moving toward completion this week of both the extension of the student loan rates at the current level for another year,” McConnell said Tuesday after his party’s weekly lunch. “Senator Reid and I have an understanding that I think would be acceptable to the House.”

Reid said he too believes they’ve come together and are at a “good place” with a deal but that the final details, which neither side was willing to divulge yet, would have to come together by Wednesday.

“We basically have the student loan issue worked out,” Reid said. “The next question is, what do we put it on to make sure we can complete it? There are a number of suspects we have, but right now we don’t have that worked out yet. ”

The student loan deal may be coupled legislatively with the highway bill extension, which negotiators intimated might be the more efficient way to pass the deal, avoiding numerous votes and passing both with one fell swoop.

“We’re very close to having everything done,” Reid added. “But until we get everything done, nothing’s done. There’s been a lot of progress made. I appreciate the House Republicans working so well, and I know we can pass a bill.  But, as I told my caucus, everyone has to be very, very patient now, and wait and see how the process works out. ”

Both Republicans and Democrats have long believed the subsidized Stafford loan rates should not be doubled from the current 3.4 percent to 6.8 percent and agreed the current rates should be extended for at least another year. But getting both sides to agree on how to pay for the bill was the source of disagreement.

The nuts and bolts of the deal are still being worked out, both sides said, so they would not yet reveal the details of the compromise.

Copyright 2012 ABC News Radio


Student Loan Standoff, Finger Pointing, Continues

ABC News(WASHINGTON) -- The Senate Minority Leader declared it is the White House, not Congress, that is preventing an agreement to avoid the student loan rates from doubling in July.

As Vice President Joe Biden sits down Tuesday with college presidents to urge Congress to stop the student loan interest rate from doubling next month, Sen. Mitch McConnell, R-Kentucky, called out the White House for using “props” in an “elaborate farce the White House political team cooked up on this issue.”

Both Republicans and Democrats believe the subsidized Stafford loan rates should not be doubled this July from the current 3.4 percent to 6.8 percent and agree the current rates should be extended for at least another year.

But both sides cannot agree to how to pay for the $6 billion bill.

House Republicans have already passed a proposal that would offset federal spending needed to keep student rates low by taking money from a fund to provide preventive care through the president’s health reform law. Democrats rejected that proposal.

Last month in the Senate both the Democratic and Republican versions failed in a last-minute, and half-hearted, attempt to pass a bill.

“The administration’s approach to this problem, it’s really nothing short of surreal,” McConnell declared from the floor of the senate Tuesday morning.  “The only people dragging their feet on this issue are over at the White House itself. Republicans in Congress have been crystal clear for weeks; we’re ready to resolve the issue, to give students the certainty they need about their loan payments.”

The Vice President, Education Secretary Arne Duncan and CFPB Director Richard Cordray met Tuesday with a group of college presidents to reassert the call for Congress to stop the student loan interest rate from doubling.

On Thursday of last week House Speaker John Boehner, McConnell, House Majority Leader Eric Cantor and Senate Republican Whip Jon Kyl sent a letter to President Obama outlining some new proposals – including raising contributions to retirement programs for federal workers –  to pay for the bill. McConnell said Tuesday they are still waiting for a response.

A Senate Democratic aide says they continue to be open to discussions with Republicans and this issue will come up again in the Senate before the expiration date July 1.

Copyright 2012 ABC News Radio

ABC News Radio