The well-funded, fiscally conservative Club for Growth has urged House Republicans to vote against legislation that would extend lower interest rates on federal student loans, a move that could complicate Speaker John BoehnerJohn BoehnerRyan delays committee assignments until 2017 Lobbying World 'Ready for Michelle' PACs urge 2020 run MORE's (R-Ohio) plan to pass the legislation on Friday.
"The federal government should not be in the business of distorting the market for student loans," said Club for Growth President Chris Chocola. "Decades of government intervention have driven tuition costs to record highs, and continuing these subsidies is simply bad policy. We urge members of Congress to oppose them."
The bill would extend subsidies on federal student loans, keeping the interest rate at 3.4 percent rather than 6.8. Most Democrats plan to oppose the bill because House Republicans decided to pay for it by taking nearly $6 billion out of a preventive healthcare fund that was part of Democrats' 2010 health insurance overhaul.
House Minority Leader Nancy Pelosi (D-Calif.) on Thursday said Democrats were whipping votes against the bill.
With Democrats in opposition, BoehnerJohn BoehnerRyan delays committee assignments until 2017 Lobbying World 'Ready for Michelle' PACs urge 2020 run MORE needs to hold together most of his conference to pass the student-loan bill, and the Club for Growth's opposition could help stall the legislation if enough conservatives balk at passing it.