April 25, 2012 09:43 PM UTC

Running From The Student Loan Rate Hike

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• by: Colorado Pols

UPDATE: The Democratic Congressional Campaign Committee (DCCC) was quick today to go after Rep. Scott Tipton for his comments in favor of keeping Stafford Loan interest low–right after voting for a budget that doubles the rate. From their release, titled “Tipton vs. Tipton”:

“Now that he’s more concerned with his own reelection than helping create jobs or lower gas prices for Colorado, the best way to know where Congressman Scott Tipton stands on an issue is to check which way the wind is blowing,” said Stephen Carter of the Democratic Congressional Campaign Committee.  “After voting for a plan that would double young Coloradans’ interest rates, Tipton is now calling for the opposite. Colorado deserves a Congressman who actually fights for them, not Scott Tipton who hypocritically votes for increasing student loan rates while calling for the opposite.”

Full text after the jump.

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We took note of a blog post from Allison Sherry, DC-based correspondent for the Denver paper yesterday, which reports that Colorado Republicans in Congress “don’t hate” President Barack Obama’s proposal to prevent the scheduled doubling of federally-subsidized Stafford Loan interest rates. In particular, Rep. Mike Coffman says he is working on a proposal to do just that.

We took note of this because Ms. Sherry appears to have been, well, misled.

As the Colorado Fair Share Alliance posted to our blog yesterday (sorry we missed this):

On March 29, Rep. Mike Coffman voted for the Ryan budget, which would cut Pell Grants that go to the neediest students and also assumes that interest rates on federally-backed Stafford loans will double. [Pols emphasis]

A bit of a problem, wouldn’t you say? It might be fair to say that Colorado Republicans support keeping student loan interest rates low now, but they were singing a different tune when they voted for a budget that plans on these rates going up just a few weeks ago. We mentioned support for the same Paul Ryan GOP budget plan as a complicating factor for Mitt Romney, who also said this week he supports President Obama’s proposal to keep the rates low.

Is it too much to ask for the full story? At some point, the GOP position on Stafford Loan interest has changed–was that in response to the President turning it into a campaign issue?

Because that’s not the same thing as “agreeing,” is it?

Tipton vs. Tipton: Tipton Complains His Own Plan to Double Student Loan Rates Leaves Students “Hanging Out to Dry”

Despite voting for a plan last month that would allow the interest rate for student loans to double and allow critical education programs to lose funding – a plan that is increasingly unpopular – Congressman Scott Tipton this week voiced hope that Congress can find a way to lower the interest rate.  According to Scott Tipton, Tipton’s own plan would cause students to suffer from what he now calls “unmanageable interest rates.”

“Now that he’s more concerned with his own reelection than helping create jobs or lower gas prices for Colorado, the best way to know where Congressman Scott Tipton stands on an issue is to check which way the wind is blowing,” said Stephen Carter of the Democratic Congressional Campaign Committee.  “After voting for a plan that would double young Coloradans’ interest rates, Tipton is now calling for the opposite. Colorado deserves a Congressman who actually fights for them, not Scott Tipton who hypocritically votes for increasing student loan rates while calling for the opposite.”

Background

Tipton Voted for the House Republican Budget. On March 29, 2012, Tipton voted in favor of the House Republican budget. [H Con Res 112, Vote #151, 3/29/12]

Tipton’s Plan Would Allow the Interest Rate for Student Loans to Double. “There was wide agreement among members of Congress Wednesday that loans and grants are important, but there were questions about the $6 billion Obama proposal that would hold interest rates constant next year. Ryan’s budget would allow the rate to double as planned.” [Inside Higher Ed, 3/29/12]

Tipton’s Plan Cuts Critical Education Programs. Although the Ryan budget does not specify which programs would lose funding under his plan, assuming the $897 billion in cuts were distributed equally across the budget, the Department of Education would be cut by more than $115 billion over a decade and  9.6 million students would see their Pell Grants fall by more than $1000 in 2014. Over the next decade, over one million students would lose support altogether. [OMB, 3/21/12]

Now, Tipton Claims to Want Lower Student Loan Interest Rates. “Rep. Scott Tipton, R-Cortez, said he looked forward to finding ‘a spending offset’ so they continue with the lower interest rate. ‘Now this Congress must work together to pick up the pieces and ensure that young Americans aren’t left hanging out to dry with unmanageable interest rates,’ Tipton said.” [Denver Post, 4/24/12]

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