House to take up student loan fix

By: Associated Press Email
By: Associated Press Email
House Republicans are looking at a student loan system that would give students lower interest rates in coming years but would cost students more over time.

FILE - In this Feb. 15, 2012 file photo, a Stanford University student walks in front of Hoover Tower on the Stanford University campus in Palo Alto, Calif. Congressional inaction could end up costing college students an extra $5,000 on their new loans. The rate for subsidized Stafford loans is set to increase from 3.4 percent to 6.8 percent on July 1, just as millions of new college students start signing up for fall courses. The difference between the two rates adds up to $6 billion. (AP Photo/Paul Sakuma, File)

WASHINGTON (AP) - House Republicans are looking at a student loan system that would give students lower interest rates in coming years but would cost students more over time.

Members of the Republican-led House Education and Workforce Committee plan to finish work on a bill that would keep interest rates from doubling on new subsidized Stafford loans on July 1. The GOP measure provides lower rates immediately and for the next few years, but the plan also comes with potentially higher costs for some students beyond that.

Democrats plan unified opposition.

Under the GOP proposal set for discussion Thursday, student loan rates would be reset every year and based on 10-year Treasury notes, plus an added percentage. It offers a good deal now, but quickly balloons.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


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