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Student loan controversy set to hit Senate floor

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    GOP lawmakers concerned about funding proposal to keep interest rates from doubling

  • Duration 4:58
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-- back to Washington now are senators are heading for a showdown in the heated student loan battle.

Moments from now lawmakers will Begin debating a democratic proposal that would keep student loan interest rates from double -- This as a budget battle continues to rock the house.

Republicans including Paul Ryan believe that the cuts will get government spending under control but Democrats very much disagree.

The committee's proposing to double down on that misguided efforts to balance our budget.

On the backs of the -- in the most vulnerable -- staunchly defending tax breaks and loopholes that benefit the wealthy.

-- that's the story and Oklahoma Republican senator Tom Coburn is the author of the new book the debt bomb it's a very interesting read about -- He's also on the Senate Finance Committee senator welcome good to see you again born and are you Martha good morning sent to the student loan issue really is just really one part.

The effort that house Republicans are trying to make and also Republicans in the senate.

To try to take a bite out of what you called the debt bomb you're running into some pretty strong headwinds.

Well I think the American people -- -- -- pollan question first of all we're gonna have to borrow one point six trillion dollars.

That's one point six trillion.

Over the next ten years to -- the student loan program that used to be a private program that was run privately.

That the government didn't have to borrow money and they subsidizes student loans through private.

So now not only we Barnett trillion dollars one point two trillion dollars -- -- we're gonna -- -- additional one point six trillion just the fund.

-- -- made -- -- -- example as I said in the -- if you want to make something expensive have the government make -- affordable.

What we have done it and I would also know Martha in the president's budget that was just released two months ago.

He then kept the interest right back on student wants all of a sudden if there's this is there new idea or something or is this a political -- Because we're talking about election in November.

When he doesn't have it in his budget and now that he says he wants to cut student loan write back from what they should be should it happen.

But I should happen is market forces should control the rate on interest that taxpayers.

Are treated fairly that way and -- -- the people who borrow the money that are -- Yeah I think has a lot of folks -- had a is going to listen to this argument back and forth right you go back to the raising of the debt ceiling.

And it was a deal put in place that you had to come up with one point two trillion dollars congress did in cuts.

In order to raise that debt ceiling we all -- the super committee came and they could not accomplish that.

Then this equipped -- illustration -- -- Which is supposed to take place in the beginning of the year.

And now the deal that you are coming up with now is supposed to forego that sequestration because you don't wanna see this kind of cuts happen in defense.

That are in that -- and I right so far correctly the.

Well first of all the sequestration doesn't start till January 2013.

Kennard.

We didn't make near enough -- I'm speaking for Tom -- and not the Republican Party.

Sequestration is a stupid idea but that's what it says as you cut good programs as much as you cut wasteful program.

Which is crazy which he gets away the reason that sequestration was agree to there's no politician says I have to have my hands on this because we were forced to do it.

We just lack courage -- -- to do the right thing.

Well if we're gonna help people with student loans than let's help them but if we get what we're gonna -- more and it's gonna cost the American taxpayer.

Money then we ought to cut some spending somewhere else that's 350.

Billion.

Dollars a year in waste fraud the duplication that I can point out I any American.

You know I haven't had the -- -- went through -- that is because I think Americans are just so frustrated with the lack of action.

In congress I think everybody in this country Democrats and Republicans across the board know that there need to be.

Suspending -- in order to move they started to to protect the country basically from complete the -- But Democrats will tell you as you hear all the time.

Then if you just you know tax wealthy people more and you take you know raise taxes on oil company is.

And that you're gonna you're gonna go a long way to solving the problem than that that's what they believe.

Well that they know that's not true they know we need to reform the tax code and we can -- a 100% of the wealthy.

Of everything they make over a 100000 dollars -- we wouldn't come -- even balancing the budget than a year so they did they know that's not for.

What they what there is this is all about politics this is all about November this is silly time in Washington unfortunately it's silly time all the types want to.

Just say no -- and I feel like it extends throughout the year the senator Coburn thank you so much for -- -- -- -- the book is -- the -- -- it's a very interesting -- I think no matter -- side of the -- -- -- so thanks for being -- senator -- -- -- him.

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