RUSH: This is what it was: "A tentative agreement to overhaul the federal student loan program was close to collapsing on Thursday night after the Congressional Budget Office said the proposal would cost the Treasury $22 billion over 10 years..." What this means is -- and this is the New York Times. It means that lowering the student loan rate to 3.4% would cost the Treasury $22 billion, and we can't do it! And, furthermore, it's the Republicans' fault.
The New York Times version of the story is that the Republican Party wants to do damage and raise the deficit by lowering the student loan. This is incredible, and the students are blaming the Republicans. "A Georgetown University student blamed the Republicans for allowing student loan rates to double, while another said that all Republicans should be put to death." Campus Reform interview Georgetown students about their thoughts on student loan reform, and the Republican Party is taking the hit for this -- when in fact, every item in it is happening because the Democrats want it to happen!
RUSH: Now, a little bit more information here. Two stories on the student loan business. The essential takeaway is that the Republican Party wants to lower the student loan interest rate, and they are being blamed. The first story's from the New York Times: "A tentative agreement to overhaul the federal student loan program was close to collapsing on Thursday night after the Congressional Budget Office said the proposal would cost the Treasury $22 billion over 10 years." Well, that's a fine time for this to come up. The federal student loan rate was by law supposed to -- I always get the timeline on this confused.
When the Democrats took over the House in 2007, the federal student loan rate was, I think, 3.4%. And they messed around with the law, and the upshot of it is that the rate was to double to 6.8% last summer, in the summer of 2012, so as to become a campaign issue in the presidential race. Yeah, in 2007, the Democrats cut the rate in half. It was 6.8, they cut it in half to 3.4 and took credit for it. And then they automatically said that the 3.4% would expire in July of 2012, thereby returning the rate to 6.8%. They did this in the event that the Republicans were running the House, the Republicans would get blamed for it. They planned all this in 2007 when they cut the rate in half. They then put a provision in that that would return to what it was 6.8% in the summer of 2012, which it did.
Now, at the time, everybody knew that when that happened, then there would be a mad dash to take it back down to 3.4% again as part of the campaign. But something went wrong and it didn't happen. It's still at 6.8. Now a bunch of noise is being made about lowering it 3.4, and guess what? The Republicans run the House, they want to lower the student interest rate back down to 3.4%, which is where it was in 2007, and now the Democrats are calling them budget busters. Out of nowhere, the CBO has a story that says, wait a minute, if you reduce the student loan interest rate, that's gonna reduce federal revenues by $22 billion. What that means is it's gonna cost the federal government $22 billion.
So now the Republicans, who are only doing what was slated to have been done last summer, are now being called budget busters. The companion story to this comes from a relatively new site, CampusReform.org. "Students Blame Republicans, Wish They Would All Die -- A Georgetown University student blamed the Republicans for allowing student loan rates to double."
By the way, these students don't know what the hell is going on. This is all programmed in part of the campaign strategery of the Democrats. They've got these students pretending to be just, you know, run-of-the-mill, don't know what's going on. They've been told their student loan interest rate's gonna double, "Oh, my God, that's outrageous, how'd that happen?" "The Republicans are doing it." It's all made up. It's all trumped up, but the students are running around like they're really genuinely agitated, like they just learned about this, and now they're blaming the Republicans for it.
"Campus Reform interviewed Georgetown students about their thoughts on student-loan reform and the GOP in general. One student gave a startling answer when asked whether he supported the Republican plan. 'I don’t think I support anything the Republicans do,' he said. 'I think all of them should probably be put to death.' Another student, who was watching the interview, chimed in with, 'That was a little harsh.' Off camera, the first student said, 'No, it wasn’t.'"
Why should the taxpayers be subsidizing the political indoctrination of the next generation anyway? What the student loan interest rate is sort of obscures a larger point. But the politics of this is that the Democrats planned this. Now, if the Democrats really cared about the students, if the Democrats really cared about the poor, if the Democrats really cared about a financially strapped middle class, they would lower the interest rate. But the Democrats have calculated that there's more value to them in leaving the interest rate at 6.8% and blaming that on the Republicans, because the Democrats know they're gonna get the votes of the youths, the college students anyway. So it's a double whammy. They keep the interest rate high and the Republicans get the blame for it.