U.S. Senator Mike Enzi gave a speech on the Senate floor Wednesday about providing students with a permenant fix for college loan interest rates. Enzi pointed out that the Senate majority’s short-term fix would save 40 percent of students just $6 a month on new loans by speeding up taxes on working-age folks who inherit money from their deceased loved one’s retirement account.
A section of the President’s health care law eliminated private banks from competing for student loans and locked in a higher interest rate. According to Enzi, the money the federal government gets from overcharging students goes in part to help pay for the health care law, not to students for their education.
In June, Senator Enzi voted for a long-term market-based solution that mirrored the plan President Obama offered. It would have permanently fixed the interest rate for 100 percent of students taking out new loans. Enzi believes that a permanent solution is needed and plans for a one-year extension are part of the problem in Washington.