Republicans Release Bill to Stop Interest Rate Increase
- Student loan interest rate proposals from House Republicans and some Senate Democrats
- House holds hearing on student loan interest rates
- Arne Duncan and senators agree compromise is possible on student loan interest rates
- House panel votes on student loan interest rates, transparency study
- Senate approves student loan bill by surprisingly large margin
As President Obama continued his barnstorming tour to campuses in key election swing states calling for Congress to stop the interest rate on federally subsidized student loans from doubling, several bills were introduced to do just that, including one from House Republicans. The key difference among the bills is how they would pay for an extension of the 3.4 percent interest rate, estimated to cost about $6 billion in the first year. A bill from Senator Tom Harkin, an Iowa Democrat, would pay for the extension by changing a tax loophole for so-called S corporations. A House version announced by Representative George Miller, a California Democrat, would cut oil subsidies, and a version from House Republicans, introduced by Illinois Republican Judy Biggert, would cut money from a portion of the health care law used for disease prevention and public health.
The bill represents a reversal for House Republicans, who had previously said they weren't interested in a short-term extension. Future debate is likely to center around what will be cut to pay for the extension, without which student loan rates will increase July 1.