WASHINGTON
— The government's subsidized student loan program,
a marquee issue for President Barack Obama last year
as he courted young voters on the campaign trail, is
back on the White House agenda one month before a
scheduled interest rate increase. But Obama's push to
avoid the increase is far more low-key than it was in
the election year.
The
president will host college students Friday at the
White House as he calls on Congress to keep the rates
from doubling on July 1. But faced with a similar
deadline, Obama by this time last year had launched a
full-throated campaign to pressure Republicans to act,
delivering speeches at college campuses and high
schools in presidential battleground states.
Congress
eventually extended the rate for one more year. Obama
and his aides often point to their effort as an
example of how they can mobilize the public to force
lawmakers to act.
This
year, Obama has been less confrontational, proposing a
student loan plan in his budget and waiting to see
what developed in Congress.
Last
week, the House passed legislation that would link the
rates the financial markets by pegging them to
fluctuations in 10-year Treasury notes. The White
House threatened to veto it if that's the version that
lands on his desk. The Senate has yet to act.
Obama's
proposal also would link the rates to the financial
markets — a step opposed by many liberals. But
Obama's plan, unlike the Republican proposal, would
lock in the rates for borrowers. The Republican plan
would set a cap.
"While
we welcome that House Republicans have paid some
attention to this issue this year, their proposal
unfortunately does not meet the test," White
House spokesman Jay Carney said Wednesday. "It
fails to lock in low rates for students while also
eliminating a safeguard that provides middle-class
families most in need with lower interest rates for
student loans."
Rep.
John Kline, R-Minn., chairman of the House Education
and the Workforce Committee, has said his proposal has
a number of similarities to Obama's plan and has
described his proposal as a starting point for
negotiations.
Some
Democrats are seeking a two-year extension of the
current rates until Congress takes up a higher
education bill later. Republicans have rejected that
proposal — expected to cost taxpayers $9 billion —
as costly and irresponsible.
Obama's
event on Friday comes as Congress prepares to return
to Washington after a weeklong Memorial Day recess
that has given Obama a respite from triple
controversies, including an admission by the Internal
Revenue Service that it singled out conservative
groups for special scrutiny during the two previous
election cycles.
"It's
obvious that the White House would love nothing more
than to change the subject from its growing list of
scandals, but scheduling this PR stunt reeks of
desperation," Brendan Buck, a spokesman for House
Speaker John Boehner, R-Ohio, said in a blog post
Wednesday. "Picking a fight out of thin air where
there's policy agreement isn't going to get the White
House out of trouble, and it certainly doesn't do
anything to help students facing a looming rate
hike."