By Peter Marcus, THE DENVER DAILY NEWS
Democratic incumbent U.S. Senate candidate Michael Bennet’s campaign said yesterday that opponent Ken Buck wants to do away with federal student loans.
But Buck’s campaign says, “Usually incumbents run on the record, but Bennet is running away from his.”
The Buck campaign says the Weld County District Attorney does not want to do away with federal student loans, but does oppose a “government takeover of the student loan market.”
When referring to a “government takeover of student loans,” Republicans are referring to recent federal legislation that requires all student loans originated after July 1 to be done through the U.S. Department of Education’s direct loan program. For 45 years prior to the legislation, private banks and lenders received a federal subsidy for making government-guaranteed college loans. The Congressional Budget Office has estimated that the change will save taxpayers about $61 billion over 10 years because the government won’t have to pay a subsidy to banks anymore.
Bennet’s campaign said Buck has called for a plan that includes shifting federal student loans over to private loans. Switching to solely private loans would double interest rates and prevent many students from receiving a college education, said Bennet’s campaign.
“Michael believes every student deserves the opportunity to attend college regardless of financial circumstances,” Bennet campaign spokesman Trevor Kincaid said in a campaign e-mail. “Ken Buck’s extreme position would repeal student loans and the dream of a college degree for hopeful students all over Colorado who wouldn’t be able to attend college without financial aid.”
Bennet joined students yesterday on the Auraria Campus where he rallied for federal funding for higher education. As the former superintendent of Denver Public Schools, Bennet has made education a focus of his campaign and work in the U.S. Senate.
Bennet says private student loans are not guaranteed by the federal government and therefore are not regulated to protect students.
“By any measure, federal loans are a much better deal for students and families than private loans,” states a Bennet campaign e-mail. “Federal loans have low, fixed interest rates, while private loans often have variable interest rates that fluctuate wildly quarter-to-quarter, forcing students to engage in risky and unpredictable financing. The policy Ken Buck has suggested would force students to rely on private loans and extreme interest rates in order to pay tuition, leveraging their future and gambling with their hope of a better life.”
The average private student loan has a 12 percent interest rate, about twice that of the most expensive federal student loan, says the Bennet campaign.
But Buck’s campaign fired back, arguing that Bennet voted against lowering student loans from 6.8 percent to 5.3 percent as part of a motion to the Health Care and Education Affordability Reconciliation Act of 2010.
“This rubber stamp vote might have helped him in his caucus, but it hurt Colorado families,” said Buck campaign spokesman Owen Loftus.
Buck holds a narrow three-point lead over Bennet, according to the latest Rasmussen poll released yesterday.
The Bennet campaign says the U.S. Senator is focused on providing affordable higher education to students. They say federal direct loans offer more flexibility in setting up repayment plans and are more widely available to students of all financial backgrounds.
“The benefits and protections provided by federal loans are virtually non-existent for private loans, and financial experts and student financial aid counselors strongly advise students only to rely on these risky financial products as a last resort when all other sources of aid have been exhausted,” said the Bennet campaign in a policy e-mail. “And for those students unable to obtain private loans, the only recourse would likely be crushing credit card debt.”

