Andrew Roth - April 27th, 2012
KEY VOTE ALERT
“NO” on Student Loan Subsidies (HR 4628)
The Club for Growth urges all House members to vote “NO” on the Interest Rate Reduction Act (HR 4628). The House may consider it on the floor as early as today. A vote on this plan, and perhaps procedural votes, will be included in the Club’s 2012 Congressional Scorecard.
Regardless of the merits, the government should not be in the business of subsidizing student loans.
Before 2007, the interest rate for subsidized Stafford student loans was 6.8%, but House Democrats voted that year to lower the rate to 3.4% for the next four years. This bill would extend that rate for new loans for another year, costing taxpayers $6 billion. It’s bad policy to subsidize student loans in the first place, but the net result will likely drive up tuition costs for all students, making the overall cost of the bill much higher than its current price tag. House Republicans want to offset this subsidy by repealing the Prevention and Public Health Fund that was created with the passage of ObamaCare. That fund should indeed be repealed, but fiscal conservatives should only try to repeal the entire law, not just parts of it. And for the most part, the offset is irrelevant. Fiscal conservatives should not be promoting bad policy, which this bill contains.
Our Congressional Scorecard for the 112th Congress provides a comprehensive rating of how well or how poorly each member of Congress supports pro-growth, free-market policies and will be distributed to our members and to the public.
UPDATE: The bill passed 215-195.