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How To Pay To Keep Student Loan Rates Low? Tax The Rich, Or Cut Health Care?

How To Pay To Keep Student Loan Rates Low? Tax The Rich, Or Cut Health Care?

If Congress doesn’t act soon, interest rates on student loans will double,  cutting the nation’s disposable income drastically and potentially derailing the economic recovery.

But Republicans say that’s a “manufactured” crisis.

According to Speaker of the House John Boehner, the party has no intention of letting the interest rates double.  Their only argument is how to offset the expense.  And as always, they want that to be paid by the middle and lower income Americans.

According to The Hill, the Republicans have introduced a bill to the House that will keep the interest rate from doubling, and will pay for it by cutting finding for preventative care from the Affordable Care Act.  It’s a brilliant solution — now those who are struggling to pay their student loans don’t have to worry about not being able to make their new payments.  Instead, they just have to hope that they don’t get sick, because until they are ready for an emergency room, they’ll have to pay for anything else out of pocket.

Of course, this move could backfire.  Since student loans are not dischargeable if you file bankruptcy, the only way to get out of paying them is to die.  And, since Republicans have decided that those who went to college should have to give up health care to continue to afford their loan payments, they may lose even more loan owners to death before they pay off their debts.

The Democrats offered two other ways to pay for the rate extension — by either asking S-corps to pay a payroll tax that they are usually exempt from paying, or by eliminating tax breaks for the oil-and-gas industries.  Republicans called both of those options a no go.

Pay off your student loans or die trying?  The GOP apparently is taking that literally.

 

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81 comments

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7:56PM PDT on May 1, 2012

Getting rid of preventative care is a horrible idea. It means further overburdening emergency rooms with problems that could have been dealt with more quickly and easily at the start. It means creating a sicker society. It means more missed days of work and more disabled people. Cutting preventative care harms society and is fiscally unwise. It is the sort of move that looks good on paper, since you can't directly see the long-term costs. But, as usual. the Republicans don't care about financial matters if they will take more than a year or two to manifest.

5:40PM PDT on May 1, 2012

On the other side of the coin, taxing the rich isn't going to work, either. Even if you took all the money the so-called 1% has, it wouldn't be enough to pay all of our debts. We're in for some long-term pain, no matter how you look at it. We need to get the spendthrifts out of Congress and get some real work done. Cut everything - including the military. That's what it will take. We'll have to get used to a much lower standard of living.

5:37PM PDT on May 1, 2012

Actuall, cutting health care will cost us more in the long run, too. Poor people who don't have access to health care - especially preventive health care - will not go to doctors until they have to go to the emergency room. Who pays for those emergency room visits? Our tax money. You don't think the hospitals just give the treatment away, do you? That woud bankrupt our hospitals, and then NOBODY would be able to get treatment. Our local Kaiser hospital here has more than half its beds full with indigent patients. If they aren't getting tax dollars for reimbursement, then everyone who has Kaiser insurance is paying for that with higher medical premiums, and it's much more expensive than preventive care. Preventive care is one of the best investments we can make.

3:48AM PDT on Apr 29, 2012

TAX THE RICH!!!

3:35PM PDT on Apr 28, 2012

the Repubs are saying the same thing regarding student loan interest rates as the President, the difference is they are saying pay for it (and at least some of the mounting defaults) with other gov money.

The President of course would rather a new tax and this becomes another rally cry for those who want something paid for as much as possible by someone else...

The interest rates would only go back to what they were before another one of Obama's temp "tax cuts". The rates would actually be above the inflation rate so this wouldn't be another Treasury draining entitlement.

The President is supposed to be the steward of the people's money...why does giving it away for votes just excite the hell out of all of you?

1:35PM PDT on Apr 28, 2012

Stop bit*hin' and get out there and be one!

12:39PM PDT on Apr 28, 2012

I was astonished when I heard about this new Republican scheme. Charge education expenses to the medical budget. Then you can complain about how horribly bloated the medical budget is, and start slashing THAT! This is a lose-lose proposition.

12:29PM PDT on Apr 28, 2012

ty

11:20AM PDT on Apr 28, 2012

Last night I was once again reminded of how the repugnant party ruined the fiscal health of this country. First there were the unneeded tax cuts to the wealthy that provided very few jobs during the eight years of the bush league presidency. Then there were the two unfunded wars. Where in the hell did they think this money was coming from? Finally, [I am a senior citizen] there was the prescription drug boondoggle, another unfunded program. Just get on with it. Restore the tax rates, mine too if it helps.

9:39AM PDT on Apr 28, 2012

Republicians: TAX THE RICH!!!!!!!!!, ..........LEAVE WOMEN,POOR,ELDERLY,CHILDREN,WORKERS "ALONE" LEAVE SOCIAL PROGRAMS ALONE, TAX THE RICH, WHICH COVERS YOURSELVES. WORK FOR THE VOTERS THAT GAVE YOU YOUR CUSHY JOBS!!!!!!!!!!. POOR PEOPLE PUT YOU IN POOR PEOPLE ARE TIRED OF YOUR CRAP, AND "WE" CAN AND WILL "VOTE" YOU OUT!!!!!!, THEN YOU CREEPS CAN GET JOBS IN THE W,VA COAL MINES!!!!!!!!!!!. Diana.

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