Judd Gregg: “In recent days, much ink has been spilled and much rhetoric bandied about on the subject of the 8.5 percent interest…”

“In recent days, much ink has been spilled and much rhetoric bandied about on the subject of the 8.5 percent interest rate on student loans the Federal Government guarantees to a handful of lenders. We all agree that this loophole, which results in windfall profits to some lenders and banks, should be ended. Only recently have my colleagues on the other side of the aisle even acknowledged that this was a problem. It should be noted, that Democrats not only created and protected this flawed policy during the Clinton administration they failed to correct the problem when they were in the majority. Republicans have repeatedly demonstrated a commitment to ending the exploitation of the 9.5 percent interest rate guarantee. The President submitted a budget in February that closed the loophole. House Republicans introduced a higher education bill in May that also would close the loophole. But Democrats showed no interest in moving either of those pieces of legislation. Instead, they have recently offered a series of misguided, ineffectual attempts to close the loophole.”