Shirey Seigworth

Dr. Baumann
PL SC 001
January 26, 2014
Student Loan Interest Rate Bill
The article entitled US student loan bill signed into law in rare show of bipartisan
compromise, which was posted electronically by theguardian describes the passing of the bill to
keep student loan interest rates low. The article discusses how President Obama signed a bill
that would keep interest rates low for college students (US student loan bill, 2013). He praised
both Democrats and Republicans on coming to an agreement about the need for students to
continue having low interest rates. He cracked a few jokes about the niceness of being able to
sign a bill since the republican controlled house made passing bills more difficult. Lawmakers
were in disagreement over how to implement student loan rates in the future, however,
eventually they agreed that a doubling of rates it kicked in July 1 when Congress failed to act
before the deadline would be bad policy and bad news for students (US student loan bill,
2013). With the lower loan rates around 11 million students will save about $1,500, which helps
to make college more affordable (US student loan bill, 2013). The article mentions that
Obama plans to strategize on how to deal with the escalating cost of college. The bill is only in
effect until 2015, however, the student loan rate cannot exceed 8.25% (US student loan bill,
2013).
One of the concepts covered in our reading and lectures was the idea of a coordination
problem hindering collective action. Congress is wrought with coordination problems involving
democrats and republicans and even divides within each party. In this case, Republicans were
making it difficult for Democrats to keep the low interest rates for student loans. In the eyes of
Nancy Pelosi, House Republicans' plan to saddle families with billions more in student debt
and its true that many republicans did indeed support the increase in student loan interest rates
because it would bring in more revenue (US student loan bill, 2013). However, seeing as
collective action was reached and the bill passed, clearly some Republicans did support the
continued low rates and others may have agreed to compromise by seeing it as part of the
Republican jobs plan, such as House Speak John Boehner (US student loan bill, 2013). The
collective action only came after a long period without coordination within the Republican Party
and between Democrats and Republicans.
A related topic that was discussed in the chapter and lectures was focal points leading to
collective action. The prominent cue that led the two parties to pass the bill was the increase in
student loan rates that was set to occur on July 1. The approaching school year, which would be
affected by the increase of loan interest rates, created a focus on the increase and led to the rare
compromise between Republicans and Democrats (US student loan bill, 2013). Republicans
realized that the increase of student loan interest rates was not in the best interest of the students
and agreed to cooperate with Democrats on continuing the low rates because the government
can borrow money cheaply at this time (US student loan bill, 2013). There was a focal point
at play here that led the bill to be passed because of the imminent increases of interest rates.
Another concept that relates to the article and the material from the readings/lectures is
coalitions that allow collective action to occur. Clearly, Republicans and Democrats are (for the
most part) not like minded groups within congress. In the case of the continuation of the low
student loan interest rates, both parties were able to come to an agreement. Republicans agreed
because they view it as an investment in the future because more people will have higher
education and will be a part of the work force. Democrats agreed because that is one of their
preferences. According to the article, President Obama said he'd be looking to the same
coalition of political forces that came together on student loans as he pursues further steps (US
student loan bill, 2013). Coalitions are necessary in order to pass a bill with a majority vote and
for collective action to take place.
The United States does indeed need government. There are way too many people for
there to be anarchy. Without a government, rules set by society or another lesser power can only
be enforced so well. A government creates stability in the chaos of human interaction. Anarchy
in a country of over 312 million people would be complete and utter madness. Many people
would do things out of self-interest and there would be no security for people. There wouldnt
be any assurance of rights, no control of any aspect of business standards, no protection from the
harm of criminals, fires, financial insecurity etc. Government has set in place and controls so
many things that it is mind boggling trying to list all of the things that would not exist without
the governments original implementation and continuation today.
As for federal government, there is too much territory and other resources to not have a
central body to govern the vastness of the U.S. A federal government not only is able to set rules
for everyone within the country so there is uniformity, but is able to keep the state power in
check. The founders of the United States decided long ago that the state territories should
interact closely with each other instead of all becoming separate countries. In order for this to
occur, a federal government that encases the whole nation is 100% necessary. There are too
many states and too many people for them not to be connected by a power greater than each state
government. States all operate under the same constitution and the federal government has the
executive, legislative, and judiciary branches so that the principles of the constitution can be
upheld and expanded upon if needed. Having central leadership unites the states and allows
them to be led by an elected official that the majority of the nation has agreed upon. The
cooperation, trade, law enforcement, etc. between states would be drastically less efficient
without the federal government connecting each state. With the history of the states in mind and
the enormity of the United States as a whole, having a federal government is necessary in order
to operate as a nation.















Works Cited
"US student loan bill signed into law in rare show of bipartisan compromise." theguardian.com.
theguardian, 9 Aug. 2013. Web. 26 Jan. 2014.
<http://www.theguardian.com/world/2013/aug/09/student-loan-bill-obama-congress>.