Washington, D.C. -
President Barack Obama has threatened to veto a bill by republicans that keeps the federal student loan rate lower, something that was about to go up, nearly doubling from 3.4% to 6%. Both Obama and republicans had recently said they need to act to keep the rate from going up.
The OMB has called the bill "politically motivated" and said the republicans were not at all "serious" about lowering the federal student loan rate, going on to say this is political "grand-standing" so they can say they tried to lower the federal student loan rate but Obama blocked it.
In the republican bill, they paid for the reduction by taking money from a program called the Prevention and Public Health Fund. The fund is part of Obama's health care program and helps pay for women to get check ups and screenings for common deadly diseases such as cervical cancers and breast cancer.
House speaker John Boehner called Obama's threat empty saying Obama had already authorized cutting the fund's budget for fiscal year 2013 and that he'd be vetoing a bill over a cut that he had already been planning to make. The cuts were to be a gradual reduction totaling $4 million over 10 years.
The White House argued there is a difference between reducing it as they had planned and "gutting it" as the republicans have proposed in the current bill.