Tuesday, January 16, 2007


Another Broken Promise...
Democrats Have a Difficult Time with the Truth...When it comes to Student Loans

Washington, DC – Rep. Tom Price (GA-06-R) issued the following statement today after Democrats failed to fulfill their pledge on student loan interest rate cuts.

The Promise:

    “Democrats have a plan for college affordability: our New Direction will begin by cutting student loan interest rates in half.” – Speaker Nancy Pelosi (Click Here for Statement; Accessed: January 16, 2007)

    “Our New Direction plan will slash interest rates on college loans in half to 3.4% for students and to 4.25% for parents…” (Portion of A New Direction for America; proposed by House Democrats in the 109th Congress as their plan for the majority)

The Reality:

    House Democrats campaigned on and sold a false bill of goods to the American people. Instead of cutting rates in half across-the-board, the Democrats phase down the fixed rate over FIVE years and ONLY for subsidized loans going to undergraduate students. To top it off, once the fixed rate for this one category of loan reaches 3.4%, it is only in effect on such loans for six months – the fixed rate returns to its original rate after the phase down.

“The ‘100 Hour Agenda’ is full of loopholes and half-truths, and based more on what sounds good than what is sound policy,” said Price. “Playing with interest rates on college loans to serve political purposes is not only irresponsible, but does a disservice to students and parents.”

“Figuring out how to pay for college is challenging enough. Phasing down the rate and then reapplying old interest rates is hardly a genuine effort. Each action, while well-intentioned, has unintended consequences and brings us further away from greater college access and affordability.”

The Solution:

    Positive, Principled, Solution-Oriented Leadership

Democrat Broken Promise Meter: 8

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