Republicans to Back Obama's Student Loan Idea

By: Associated Press
By: Associated Press

WASHINGTON (AP) -- House Republicans are willing to give President Barack Obama a rare victory on college loans.

The GOP-led House Education and Workforce Committee is backing an idea in Obama's budget proposal to link student loan interest rates to market rates. That's according to Chairman John Kline of Minnesota, who tells The Associated Press he'll add a cap to calm fears of runaway interest rates.

Kline says he's "happy" to let Obama win on this one.

Kline's proposal would consolidate subsidized and unsubsidized undergraduate loans into one program, eliminating taxpayer help on interest payments for needy students.

Without congressional action, interest rates on new federally subsidized student loan rates will double on July 1. That would cost the average student an extra $1,000 each year.

You must be logged in to post comments.

Password (case sensitive):
Remember Me:
WBKO 2727 Russellville Road Bowling Green, KY 42101-3976 Phone: 270-781-1313 After Hours Hotline: 270-781-6397 Fax: 270-781-1814
Copyright © 2002-2015 - Designed by Gray Digital Media - Powered by Clickability 206807641 -
Gray Television, Inc.