Mitch McConnell & GOP senators block student loan bill

WASHINGTON - Led by Senate Minority Leader Mitch McConnell, Senate Republicans Wednesday blocked a Democratic bill aimed at lowering student loan interest rates.

The Senate voted 58-38 in favor of a procedural motion to take up the bill, but that was two votes shy of the needed 60. Senate Majority Leader Harry Reid, D-Nev., voted "no" for procedural reasons, while just three Republicans - Maine's Susan Collins, Tennessee's Bob Corker and Alaska's Lisa Murkowski - voted with the Democrats.

Sen. Lamar Alexander, R-Tenn., and the ranking member of the Senate Health, Education, Labor and Pensions Committee, denounced the Democrats' proposal as a "political stunt." He also said it was unconstitutional.

McConnell, R-Ky., who is running for re-election this year, characterized the legislation as a Democratic campaign talking point that would not help debt-ridden students.

"I know the majority leader and his Democratic colleagues would rather stick to their campaign playbook," the Kentucky lawmaker said in Senate floor remarks. "We know they'd rather talk about a bill they claim is about student loans. But the Senate Democrats' bill isn't really about students at all. It's really all about Senate Democrats."

"Because Senate Democrats don't actually want a solution for their students," McConnell added. "They want an issue to campaign on - to save their own hides this November."

The senator said the Senate instead needed to get to work on legislation to help veterans.

"We can do both," countered Sen. Al Franken, D-Minn.

"We need to address this," he said. "Why, why are you able to refinance your home loan in this country, you're able to refinance your car loan, you're able to refinance a business loan, but you can't refinance your student debt? That just makes no sense...This is about fairness."

Sen. Elizabeth Warren, D-Mass., the chief sponsor of the bill that would allow people to refinance their student debt at lower rates, said it would help millions of Americans.

"This debt is crushing our young people and dragging down our economy," Warren said.

Sixty-two percent of Kentucky college seniors had student debt, which ranks the state 19th-highest, according to the nonprofit Project on Student Debt. The average debt was $22.384.

In Indiana, 64 percent of college seniors had loan debt, ranking the state 13th-highest in the nation. The average student loan debt for Hoosiers was $27,886.

President Barack Obama has been spending the early part of this week focusing on student loan debt and has endorsed the Warren bill.

McConnell's Democratic opponent, Kentucky Secretary of State Alison Lundergan Grimes, issued a statement after the Senate vote accusing the senator of voting against the middle class.

"Senator McConnell's blatant disregard for the hundreds of thousands of Kentuckians crushed by student loan debt is deeply disconcerting," Grimes said.

A House bill similar to the Senate legislation has been introduced by Democratic Reps. George Miller of California and John Tierney of Massachusetts. Rep. John Yarmuth, D-3rd District, is a co-sponsor.

The House legislation has been referred to two committees but has not been given public hearings so far.