WASHINGTON, D.C. – U.S. Sen. Jim Inhofe (R-Okla.), the senior senator from Oklahoma, released the following statement today on the Senate's failed motion to proceed to consideration of S.1238, the Democrat-sponsored student loan interest rates bill:
“Once again Senate Democrats are using an important issue to hike taxes, this time leveraging assistance for Americans to pursue higher education. Several of my colleagues put forward a common-sense, bipartisan alternative to permanently fix all federal student loan interest rates and put a cap on consolidated loans, similar to the President’s proposal. Unfortunately, the Democrats chose to only allow a vote on their plan that was a partisan, temporary patch and would have only addressed 40 percent of student loan volume. Students and parents need certainty in planning, which is why I voted against S.1238."
S.1238 failed on a motion to proceed by a vote of 51- 49. The legislation would extend the current 3.4 percent rate for one year and cost $4.25 billion. It would be paid for by permanently changing the tax treatment of certain inherited IRAs and 401(k)s.