Novak Skewers GOP on Student-Loan Bill Performance, and Rightly So; Local Reps Mostly Disappoint

Novak ripped Republicans in the House earlier this week for supporting the student-loan rate reductions that passed last week — and with good reason:

The bill, passed by an overwhelming bipartisan House vote, was headlined as reducing the interest on federally subsidized student loans from the present 6.8 percent to 3.4 percent. Actually, it gradually reaches the 3.4 percent level on July 1, 2011. A student taking out a loan July 1 this year would pay 6.12 percent after graduation. Only 29 percent of all students getting loans would be eligible for this gradual cut. Other student loan programs will be cut to help pay for the $7 billion cost over five years. And, contrary to Democratic implications, the bill does nothing to slow skyrocketing college tuition.

So now it appears that instead of today’s two-tier structure (”subsidized” and “unsubsidized” loans; both are actually subsidized, but so-called “unsubsidized” loans accrue interest while the student is in college), the new legislation goes to at least three and maybe four tiers, depending on which “subsidized” and “unsubsidized” loans are eligible for the lower-rate treatment. What, a, mess.

Back to Novak:

….. While Democratic support has been unanimous, Republicans are divided and listless.

Because Democrats are now committed to “pay-go” (offsetting all spending increases), this bill means cutting $6 billion from other federally subsidized student loan programs on top of a net $12 billion cut by the last Republican-controlled Congress.

On the eve of last Wednesday’s House debate, the Consumer Bankers Assn. and the Financial Services Roundtable sent a joint letter to members of Congress. The offset cuts in loan funding, the organizations warned, “cannot be absorbed by the nation’s loan providers without compromising the kinds of benefits and services now provided to college students and their families.”

This warning was not be expected to impact heady Democrats, but might should have promoted among Republicans. It did not. While Democrats were 232 to 0 for the bill, only 71 Republicans followed their leadership to vote against it.

The list of local (Metro Cincinnati), Ohio, and certain other noteworthy defectors (the complete list would be too long) is very disappointing. From the Roll Call vote, these “normally reliable” reps supported the bill:

Local — Chabot (OH), Turner (OH), Davis (KY)
Ohio — Tiberi (OH), Gillmor (OH), Pryce (OH), Regula (OH), LaTourette (OH), Hobson (OH)
Certain Noteworthy defectors — Ron Paul (TX-are you kidding me?), Jindal (LA), Ros-Lehtinen (FL), Walberg (MI — was backed by Club for Growth in GOP primary against an incumbent), Wilson (NM)

In Ohio’s GOP delegation, only Boehner, Jordan, and Schmidt voted against.

If this is a trend, it won’t matter whether or not President Bush locates that long-lost veto pen.