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Brown takes student loan fight to Owens  
June 7, 2012 

With a deadline looming for Congress and President Obama to decide how to reduce college loan debt without increasing the national debt, U.S. Sen. Sherrod Brown (D., Ohio) sought Monday to get students at Owens Community College in on the fight. 

Senator Brown, who is up for re-election this year, told a gathering of students and administrators that the interest rate on Stafford loans will rise on July 1 unless Congress acts. 

He said about 10,000 students at Owens and 25,000 attending colleges in Lucas County would be affected by the doubling of the rate on subsidized Stafford loans, to 6.8 percent. “They need pressure from you and they need you to speak up,” Mr. Brown said. “Show them you’re paying attention.” 

Democrats want to cover the projected $6 billion cost with a tax increase that, according to Senator Brown, would eliminate a loophole used by lobbyists, consultants, and others to avoid paying Medicare taxes. 

Ohio’s other U.S. senator, Republican Rob Portman, said in response to a question during a telephone conference call from the Middle East, where he was on a congressional trip, that the money to continue subsidizing student loans could be found in the federal government’s $3 trillion budget. 

“The only difference I have with Senator Brown is I don’t think we should be raising taxes here in such a weak recovery. I would think the [jobs report] news from Friday, should make us all focus on pro-growth policies,” Mr. Portman said. He said the tax increase would fall on small businesses and hurt the economy. 

Senator Brown said the average U.S. student debt load tops $25,000, and an increase in that burden will hurt society. 

“What it means is students are going to be less likely to be able to buy a house, start a family, or start a business, or reach their dreams when they get out of college,” Mr. Brown said. 

Senator Brown’s opponent, Republican state Treasurer Josh Mandel, hasn’t taken a position on the competing Democratic and Republican plans. Mandel spokesman Travis Considine said 85 percent of student debt is owed to the government, which itself is in debt for $15.7 trillion. 

“It doesn’t take a college degree from Yale to know that kind of spending is unsustainable, but in an effort to make it possible for more middle-class Americans to earn a degree from places like Yale, Josh supports keeping interest rates on student loans as low as possible,” Mr. Considine said. 

Owens sophomore Jakki Kleinhans, 24, was one of three students who addressed the news conference in Owens’ Founders Hall on its Perrysburg Township campus, which was attended by about 70 students and college administrators. 

She said she plans to transfer to Bowling Green State University for a bachelor’s degree after she graduates from Owens. “My husband and I are both working on our degrees and we need student loans to help fund our education,” said Ms. Kleinhans, who is employed in the college financial aid office. She estimated the impact on her family at $5,000 from the higher rates. 

“This is additional money that we were not prepared for and have not budgeted into our repayment plan,” Ms. Kleinhans said. Her voice broke as she said it would take away from money they planned to save for their 1-year-old daughter’s college education. 

The Senate failed to reach the 60 votes needed to overcome a filibuster on a Democratic-backed bill May 24. Republicans have accused President Obama of allowing his party to use the issue for political reasons without taking action to help solve the deadlock. 

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