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Politics Thursday, April 26, 2012 Ohio senators have different read on student loan hike Portman and Brown in favor of extending lower interest rate Story by GRANT ENGLE |
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In The Region: The interest rate on student loans could double July 1 if Congress fails to reach a deal on a new extension.
Ohio’s U.S. Sen. Sherrod Brown is co-sponsoring the “Stop the Student Loan Interest Rate Hike Act of 2012.” The bill would extend a five-year-old freeze on interest rates for another year.
The bill would pay for the rate-cut by closing a loophole that allows employers who make more than $250,000 a year to avoid paying Medicare payroll taxes.
Brown said fewer graduates will be able to buy homes, start a business or go to graduate school if the interest rate doubles. |
“This came out of a bi-partisan agreement with President Bush and overwhelming majorities in both houses and both parties: this five-year, 3.4 percent interest rate. We need to bi-partisanly make this interest rate, at least lengthen it for a year or two, and I would hope, make it permanent.”
Brown said that the interest rate hike would cost nearly 382,000 borrowers in Ohio an additional $1,000 per year.
In a conference call with reporters Thursday, Ohio’s Republican senator, Rob Portman, said both sides of the aisle want to extend the interest rate freeze, but he wants to avoid raising taxes on employers.
Portman maintains the best method to pay for the rate cut was proposed by Republican Sen. Lamar Alexander of Tennessee.
“I think there ought to be an extension. And I think the various pay-fors I’ve looked at, the best ones I see are out of the healthcare bill; in part because the healthcare bill was paid for in part by taking money out of the student loan program.”
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