Tallahassee, FL -- May 7. 2012 --
Interest rates on student loans will double by July 1 if Congress doesn't act.
That's why President Barack Obama spoke via teleconference to students across the country including right here in Tallahassee. Students from TCC, FSU and FAMU listened to the president and his staff talk about the importance of capping interest rates on student loans.
TCC student Michael Edwards is concerned about where the government would pay for such a step. Edwards says he's heard and read in the news that small businesses could be taxed to make up for the capped loans.
"At the same time it would effect many of our businesses because increase in taxes on small businesses will in effect cause less jobs for many students here," Edwards said.
"The bottom line here is we can't cut our way to prosperity," President Obama said. "We can't make it harder for our young people to afford a higher education."
Keeping student loans at their current interest rates seems to be an issue both sides agree on. But both parties have different ways of paying for it. Democrats want loop holes in corporate taxes to cover it while Republicans are looking to cut social programs.
On Tuesday, Senate bill 2343 will be up for a vote that would close a corporate tax loop hole to cover the costs. In the Republican-led House, has already passed a bill that would cut funding from the federal health reform law's Prevention and Public Health Fund
"I think we can win this but only if everybody stays on it," Obama told students.
With more debate expected this week, the president believes with student support there will be a solution.
If you want to join in on the discussion on Twitter. Use the hash tag #DontDoubleMyRate