GOP Blocks Bill To Extend Low-Interest Student Loans

Tyler Durden's picture




 

While not exactly surprising, today's Senate failure to extend a bill extending the currently low interest on student loans, after a blocking vote by the GOP may bring even more attention to what Zero Hedge has dubbed one of the biggest bubbles of 2012.

From Reuters:

U.S. Senate Republicans on Tuesday blocked a White House-backed bill that would end a tax break for some private firms in order to fund an extension of low-interest rates for federal student loans.

 

Republicans prefer to cover the $6 billion cost of a one-year renewal of the 3.4 percent loan rate by taking money from Obama's healthcare overhaul. A compromise is expected. A deal must be reached by July 1 to prevent the loan rate from doubling for more than 7 million students.

 

The Senate vote was 52-45. Sixty yes votes were needed to move the legislation along.

That there will be politics involved in this touchy subject is not a secret. What, however, will hit the American (young) consumer class (and recidivist iGadget buyer) like a wall of bricks is if on July 1 there is still no deal, and the student protests seen in the recent past in London and Montreal spread to US campuses, where students demand the dignity to file for bankruptcy in peace... and full debt discharge. The counter of course will be whether anyone had put a gun to their head when they were taking out a loan. The counter to that counter will be that no students expected there would be zero jobs available upon graduation. And so on, in a tit for tat repeat of the housing bubble and the massive unexpected consequences as yet another $1 trillion bubble pops, which just like last time, will result in yet another broad taxpayer funded bailout, in which the all end up paying for the the few.

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Tue, 05/08/2012 - 13:13 | 2407181 GeneMarchbanks
GeneMarchbanks's picture

Debt Peonage.

Tue, 05/08/2012 - 13:33 | 2407241 hedgeless_horseman
hedgeless_horseman's picture

 

 

 

Most college graduates in America cannot spell subsidize. 

 

 

U.S. Senate Republicans on Tuesday blocked a White House-backed bill that would end a tax break for some private firms in order to fund an extension of low-interest rates for federal student loans.

Remind me, please, which party has the majority in the Senate? 

That is right, the Democrats have the majority.

How do the minority Republicans block a White House-backed bill?

Fucking Reuters.

Tue, 05/08/2012 - 13:36 | 2407307 Poetic injustice
Poetic injustice's picture

See, even mass media can't tell the difference between two parties? Is...there...any?

Tue, 05/08/2012 - 13:43 | 2407341 mayhem_korner
mayhem_korner's picture

 

 

Point missed.  The MSM are the ones fabricating and perpetuating the illusion of a "difference."  If it weren't for them, folks would see clearly that there is little difference behind the rhetoric.

Tue, 05/08/2012 - 13:49 | 2407347 hedgeless_horseman
hedgeless_horseman's picture

 

 

I "misremember" my high school civics.  What is the 60 vote requirement?  Ahh yes, to overcome the delay tactic called a filibuster.   

Tue, 05/08/2012 - 13:51 | 2407372 tarsubil
tarsubil's picture

No one actually has to talk. Mainly because it is all BS and a game.

Tue, 05/08/2012 - 13:55 | 2407389 Cocomaan
Cocomaan's picture

This is a wee myopic. The filibuster could have been easily defeated with the Nuclear Option, but the Democrats never bothered to do that with their supermajority. 

Tue, 05/08/2012 - 14:00 | 2407424 IBelieveInMagic
IBelieveInMagic's picture

yet another broad taxpayer funded bailout

Tyler, what are you smoking -- who is this mythical taxpayer that you keep referring to that is funding these bailouts? It's just cynical parasitical American financial hegemony that is being imposed knowing fully well that the rest of the world has to just suck it up or else it would be end of the world as we know it.

Tue, 05/08/2012 - 15:00 | 2407692 Teflon1
Teflon1's picture

The rich will pay with their blood. The richest and most educated got us into this mess.

They can get us out.... or have the poor knawing on their childrens legs.

Tue, 05/08/2012 - 18:41 | 2408437 Xkwisetly Paneful
Xkwisetly Paneful's picture

You must have a huge bill to pay! afterall half the world exists on the equivalent of $240/mo which makes you and a vast portion of the rest of the delusional zerobrains crowd amongst the rich.

Is that after they put down the krispy kremes and lattes?

Why is it that a per student per month in dollars difference is so difficult to find?

Could it be because it is somewhere between $7-$12 or the price of two krispy kremes and a latte?

Tue, 05/08/2012 - 14:12 | 2407446 The Big Ching-aso
The Big Ching-aso's picture

 

 

"I see you have a PhD in Applied Mathematics with a Masters in Chemistry from MIT."

"Yes, and I graduated with honors."

"Very good.   You're hired.   Please see Mr. Jose Medina your supervisor at 8:00 am sharp tomorrow."

"Great!   Am I working french fries or shakes?"

Tue, 05/08/2012 - 14:20 | 2407501 Silver Dreamer
Silver Dreamer's picture

This is Zero Hedge, right? Come on people! There's only one party, and it's the banksters.  Therefore, this news should not be surprising.

Tue, 05/08/2012 - 15:28 | 2407803 CrashisOptimistic
CrashisOptimistic's picture

That doesn't matter.

That has always been so.

You still have to vote to minimize damage.

Tue, 05/08/2012 - 15:27 | 2407805 A Nanny Moose
A Nanny Moose's picture

Conflict creates drama. Drama sells. Their jobs is to increase shareholder value, is it not?

Tue, 05/08/2012 - 15:44 | 2407876 Arnold Ziffel
Arnold Ziffel's picture

"You mean I have to pay this sh*t back?!...WTF??!!??"

That's my neighbor's son in utter disbelief when I told him the fact you cannot, "just walk away" from student loans like his dad did from their mortgage. I feel sorry for him...not sure how he can repay $76K working as an 'art historian.'

On second thought, when I think of how much he partied for five years....not too sorry after all.

Tue, 05/08/2012 - 15:58 | 2407939 blunderdog
blunderdog's picture

Why do you think it matters, though?

Can't collect money that isn't there.  Have they started garnishing unemployment benefits and foodstamps yet?

The neighbor's son sounds like an idiot, but it's not HIS money.  He can't lose.

Tue, 05/08/2012 - 21:26 | 2408728 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

 Worse interest capitalizes daily on these bad boyz. This isn't a home mortgage. You fall behind, and your 50,000 loan in principal can balloon seven figures and like herpes never leaves you. A slave for life.

Tue, 05/08/2012 - 13:39 | 2407315 tarsubil
tarsubil's picture

Nevermind.

Tue, 05/08/2012 - 13:45 | 2407345 Liposuction
Liposuction's picture

http://www.nationaljournal.com//domesticpolicy/senate-blocks-interest-ra...

Senate Blocks Interest-Rate Freeze on Federal Student Loans

Lulz.  Who owns the Senate? 

Next up: ECB Clears Roadblocks to new QE, FED saves puppy from drowning.

Tue, 05/08/2012 - 13:46 | 2407349 machineh
machineh's picture

'How do the minority Republicans block a White House-backed bill?'

Answer: most college graduates don't know what 'cloture' is either.

AH HA HA HAHHHHHHH ....

Tue, 05/08/2012 - 13:54 | 2407384 hedgeless_horseman
hedgeless_horseman's picture

 

 

This would be closer to the truth, don't you think?

...on Tuesday blocked delayed a White House-backed bill

I am sure it was an entirely unintentional oversight by an innocent journalist.

Tue, 05/08/2012 - 14:11 | 2407471 pods
pods's picture

Well, I know what cloture is, but I still chuckle whenever I hear it cause it just sounds dirty.

Cloture.

Kind of like the time I once gave a chick Plumeria for Christmas.

"You gave her WHAT!?"

pods

Tue, 05/08/2012 - 13:46 | 2407352 Henry Chinaski
Henry Chinaski's picture

GOP and Senate Democrat Majority Leader Harry Reid Block Bill To Extend Low-Interest Student Loans

fixed it

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm...

Tue, 05/08/2012 - 13:55 | 2407399 Cocomaan
Cocomaan's picture

Good research, this is interesting. 

Tue, 05/08/2012 - 14:25 | 2407534 roadhazard
roadhazard's picture

 In the bill sent from the House Repubicans had inserted draconian cuts to womens health care among other things unacceptable to democraps.

Tue, 05/08/2012 - 14:55 | 2407659 financial apoca...
financial apocalyptic contagion's picture

haha good work Chinaski

wtf why would the leader of the Donkeys not support his party's bill. only in America

Tue, 05/08/2012 - 13:54 | 2407386 mathdock
mathdock's picture

60 votes needed in the Senate to prevent a so-called filibuster.  They call it a cloture vote now, but principal is the same.

Tue, 05/08/2012 - 14:21 | 2407490 roadhazard
roadhazard's picture

It takes 60 votes to pass a bill. Democraps do not and have not had that many since they took the "majority" in the Senate. Being in the Majority means nothing unless you have 60 votes. That is why legislation goes nowhere in the Senate.

 

edit: Didn't see mathdock's post, so solly.

Tue, 05/08/2012 - 15:37 | 2407832 SDShack
SDShack's picture

Do you even know how many times in the last 50 years one party has had 60+ votes in the Senate? Here is the answer, only during the JFK/LBJ and Carter years, plus 2008-2010... all run by democrats. Outside of JFK, these were all terrible times for the country. But what I really want to know is how did any bills get passed in all those other years if, according to you, it takes "60 votes" to pass legislation. How did Nixon, Ford, Reagan, Clinton, Bush Sr, and Bush Jr. all get bills passed without 60 votes?

Tue, 05/08/2012 - 19:26 | 2408525 roadhazard
roadhazard's picture

Simple, you don't need sixty votes if you allow filibustering.

Tue, 05/08/2012 - 18:06 | 2408355 Augustus
Augustus's picture

Sure the Dems had 60 votes in the Senate for OBummer's first two years.  That is why it became important for them to steal the seat for Al Franken.

Tue, 05/08/2012 - 19:30 | 2408528 roadhazard
roadhazard's picture

You are assuming that Democraps are like there repubican lemming counterparts and vote as a block.

Tue, 05/08/2012 - 15:25 | 2407792 CrashisOptimistic
CrashisOptimistic's picture

There is always Reconciliation to move the bill past the block, but that would not get the headlines desired.

None of it matters.  They will all go on disability regardless.

Tue, 05/08/2012 - 13:25 | 2407245 Clueless Economist
Clueless Economist's picture

I'm looking forward to Maria Bartoromo purring through her sensous lips and Botox-Ravaged face, "Stocks down today across the board, but well off their lows of the day"

 

Tue, 05/08/2012 - 13:30 | 2407272 The Big Ching-aso
The Big Ching-aso's picture

 

 

"I got a degree in Basket Design & now I want someone else 2 pay 4 it so I can lead a productive life."

 

Tue, 05/08/2012 - 13:38 | 2407318 Poetic injustice
Poetic injustice's picture

If you refuse to pay, I'll go on disability money next week!

Tue, 05/08/2012 - 13:47 | 2407355 machineh
machineh's picture

... after being diagnosed as a 'terminal basket case.'

Tue, 05/08/2012 - 14:05 | 2407447 NemoDeNovo
NemoDeNovo's picture

ROFLMAO "Terminal Basket Case" - Now that's Funny!!!!!

Tue, 05/08/2012 - 21:55 | 2408765 HungrySeagull
HungrySeagull's picture

Start weaving, you got a long way to go for your own bucket list.

Tue, 05/08/2012 - 15:46 | 2407894 Arnold Ziffel
Arnold Ziffel's picture

Lugubriously Droll humor...if I may say so.

Tue, 05/08/2012 - 14:34 | 2407441 krispkritter
krispkritter's picture

Pardon the source and know that I do not like Hannity, but if this guy is not a plant then it's pretty obvious there is a generation that wants everything on a silver platter. If I were in a room with this guy and he started pouting about his 'plight' I'd have to leave or kick his ass...

http://www.mediaite.com/tv/hannity-destroys-occupy-wall-st-organizer-in-fiery-segment-about-movements-violence/

Tue, 05/08/2012 - 18:08 | 2408361 Augustus
Augustus's picture

Hannity later offered the guy a job.

The goy told him that he would not take a job for lesss than $80,000 to $100,000 a year.

Until he gets that, I guess he will continue to take the food away from someone's child.

Tue, 05/08/2012 - 13:56 | 2407394 aerojet
aerojet's picture

Someone downvoted you, but honestly, what else can you call it when they make the loans more available but also raise the price of tuition, fees, books, and room & board?  It would be one thing if colleges and universities held the line on cost, but instead, they are taking students for the proverbial ride--come to college, oh but, lube your ass up first!

 

 

Wed, 05/09/2012 - 02:41 | 2409197 Breaker
Breaker's picture

The principal effect of the huge expansion of student loans is a massive subsidy from the taxpaying class to the academic class. More precisely, to the administrators and to the profs in marginal majors (serious majors like engineering would be doing OK without them). 

The students are just politically sympathetic carriers of the subsidy. I understand they took the loans voluntarily and many of them wasted the time spent in college with the loans. And there should be some penalty associated with that. But they were young and were pawns in a gigantic subsidy scheme. I have a hard time with keeping them in debt peonage for 30 years for being stupid enough to fall for their role in the subsidy scheme.

OTOH, I have real problems with fixing the problem of too many student loans by continuing to hand them out like candy. Raising the interest rate would be one small step in the right direction. Terminating the program entirely would be an even better idea.

Tue, 05/08/2012 - 13:14 | 2407183 Mae Kadoodie
Mae Kadoodie's picture

How will I pay for my Ipad?

Tue, 05/08/2012 - 13:14 | 2407185 Cognitive Dissonance
Cognitive Dissonance's picture

Wait! Was that a blip in the Matrix?

Must have been a black cat. Something has been changed.

http://www.youtube.com/watch?v=z_KmNZNT5xw

Damn! Deja vu all over again.

Tue, 05/08/2012 - 13:14 | 2407186 carbonmutant
carbonmutant's picture

WH spin due in 5...4...3...2...1

Tue, 05/08/2012 - 13:24 | 2407246 macholatte
macholatte's picture

 

 


I may not know much, but I know the difference between chicken shit and chicken salad.
-- Lyndon B Johnson  

http://gunsnplanes.blogspot.co.nz/2011/05/difference-between-chicken-salad-and.html
Tue, 05/08/2012 - 13:34 | 2407290 Manthong
Manthong's picture

Speaking of chicken poop.. A little something to warm the cockroaches of the Nobel committee’s hearts:

http://online.wsj.com/article/SB10001424052702304868004577378421787264242.html

Do NOT follow this link or you will be banned from the site!