Democrats are keeping up their election-year drumbeat on student loan rates, scheduling a Senate vote to debate legislation allowing students to refinance their debt at lower rates, Reuters reported.
Republicans say it's a political gimmick that would raise taxes without addressing the real causes of rising student loan rates, according to Reuters.
Without GOP backing the bill is unlikely to get the support needed to advance Wednesday, but the debate allows Democrats to showcase steps aimed at helping the middle class this election year, Reuters reported.
The move by Senate Democrats comes after two days in which President Barack Obama made student loans a focus and announced executive action to limit how much certain student borrowers would have to pay, according to Reuters.
The administration says the bill by Senator Elizabeth Warren could help 25 million borrowers and save the typical borrower $2,000 each over the life of the loan, Reuters reported.
The bill allows borrowers to refinance at today's rates and is paid for by using the so-called Buffett Rule, which sets minimum tax rates for people making over $1 million, according to Reuters.
Majority Leader Harry Reid said student loan debt is approaching $1.3 trillion, Reuters reported. Student loan debt has topped $1 trillion, with an average of $33,400 for a bachelor's degree recipient, said Mark Kantrowitz, publisher of Edvisors Network, an education and financial aid site.
"More than car loans, more than credit card debt. It's something that is really overwhelming and overburdening the American people," Reid said, according to Reuters.
Senator John Thune said the bill wouldn't do anything to lower education costs or reduce borrowing, Reuters reported.
"This is a bill that purely and simply is an election-year bill that allows them to check a box," Thune said, according to Reuters. "And what we need to be focused on are not political gimmicks, but jobs."
