Senate Republicans block student loan Refinance Bill

Senate Republicans blocked student loan Refinance Bill

How can they help to raise the income levels of middle-class Americans?

Senator Elizabeth Warren proposed a bill which is aimed at facilitating American students to refinance their student loans at lower rates on June 11 , 2014. While 56 Democrats vote were casted in favor of the bill as against minimum 60 votes to be needed. 38 Republican Senators’ voted against the Bill thereby stalling the success of the Bill into Act. 

The Bill if passed would have given a major financial relief to the millions of Americans ( mainly middle class Americans ) as they are suffering with many years with old debt which carried an interest rate of 7% or more and could have helped them to refinance at today’s lower rate of interest. 

The Bill would have been paid for with the so-called Buffett Rule, which prescribes minimum tax rates for people making over $1million. As per Senator Elizabeth Warren, with the Republicans defeating the Bill, it demonstrate to the American people for whom Senators in the United States work for – for billionaires or for poor students.  Every decline vote casted by Republicans is a vote to give millions of young people a fair shot at building their future. 

Republicans argued that the Bill would not likely to do anything either to minimize the borrowing costs or to minimize the education costs. Republicans also accused that Democrats are playing politics by highlighting an issue that was bound to fail. 

As per Obama’s administration, Warren’s bill could have assisted about 25 million borrowers to save $2000 each over the life-time of their loans as it would have facilitated the borrowers with the older loans at a higher cost of loan of 7% to refinance to rates below 4% which is offered being today under a deal arrived at Congress one year ago.

Warren was able to get the support of only three Republican votes and had she succeeded to get another 4 Republican votes, the Bill might have become now an act, making it the second-largest form of consumer debt.

As per Senator Warren’s office, as of date, about 40 million Americans have outstanding student loan amounting to $ 1.2 trillion, thereby turning it to be the second-largest form of consumer debt, ranking behind only to mortgages. It is to be noted people who are in the age of 60 and above comprise for about $43 billion outstanding student loan debt as of date.

Thus, facilitating to refinance the student’s loan by Democratic Party which was stalled by Republicans could have helped 40 million American middle-class to escape from the debt trap and to raise their income-level.

Mrs Hillary Clinton, as the future President of America, should concentrate on refinancing the student loan thereby giving priority over the scheme. Of course, for accomplishing this, she is not only needed to be elected as the 45^th President and first-ever women President of America but also she needs a Congress with Democrats controlling the same.

Let the American Middle Class decide to select Mrs Hillary Clinton as the 45^th President of American to relieve them from the clutches of debts.

Courtesy : Erica Werner – Yahoo News