Student Loans. During consideration of the Keep Student Loans Affordable Act of 2013 (S. 1238), Senate Majority Leader Harry Reid (D-Nev.) offered a motion to invoke cloture and thus end debate on the bill so it could be voted on. This act would serve to extend the 3.4-percent interest rate on undergraduate Stafford loans disbursed to students between July 1, 2011, and July 1, 2013 to between July 1, 2011, and July 1, 2014.
The Senate rejected Reid\’s motion, and thus did not invoke cloture, on July 10, 2013 by a vote of 51 to 49 (Roll Call 171). We have assigned pluses to the nays because forcing a vote on an unconstitutional action of the federal government is a bad thing. The U.S. government should not be in the business of subsidizing higher education to begin with, and continuing a low interest rate on student loans would merely encourage this unconstitutional activity. Additionally, owing to the ease of obtaining government loans for education and the sheer amount of unpaid student debt, the nation is now facing a colossal \”student debt bubble\” that could have severe negative economic consequences.
