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Senator Blunt Supports Responsible, Bipartisan Solution To Extend Student Loan Rates

May 08, 2012

WASHINGTON, D.C. – U.S. Senator Roy Blunt (Mo.) released the following statement today regarding his vote against a tax increase to pay for the temporary extension of student loan interest rates and his support for the “Interest Rate Reduction Act,” a responsible solution to extend interest rates and offset the cost with unspent ObamaCare funds:

“Instead of increasing taxes to pay for reduced student loan interest rates, I support a common-sense, bipartisan solution to extend interest rates that will promote job creation and pay for it responsibly.

“College students and recent college graduates face fewer job opportunities and less income in the Obama economy. Instead of compounding the problem with more bad policies that raise taxes on small businesses and raid Social Security and Medicare, we must work together to prevent a rate increase on students and make it easier for job creators to hire them when they graduate.”

Blunt cosponsored the “Interest Rate Reduction Act,” introduced by U.S. Senator Lamar Alexander (Tenn.). This bill would end a controversial ObamaCare slush fund and apply the savings to deficit reduction and a stopgap measure to prevent a rate increase on new subsidized Stafford college loans.

In a letter from 37 organizations representing millions of employers to U.S. Senators Harry Reid (Nev.) and Mitch McConnell (Ky.), job creators expressed that they “strongly oppose the provision in S. 2343 to increase payroll taxes… by $9 billion.”

Meanwhile, a new study from the John J. Heldrich Center for Workforce Development at Rutgers University found that “only 49% of graduates from the classes of 2009 to 2011 had found a full-time job within a year of finishing school.”

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