Deal on Interest Rates Said To Be Close
The Obama administration stepped up calls Thursday for Congress to stop student loan interest rates from doubling on July 1, even as Senate leaders said that a deal was close to prevent the increase. In remarks to college students at the White House, President Obama called on Congress to act quickly: "There’s still 10 days for Congress to do the right thing," he said. "I understand that members of both parties say they want to get this done, and there are conversations taking place, but they haven’t done it yet. And we’ve got to keep the pressure on."
Senate Republicans accused Obama of using the issue to score political points. After months of dueling proposals to prevent the increase, which would apply to federally subsidized student loans issued after July 1, leaders were said to be close to an agreement and that details could be released within days.
Obama said preventing the interest rate increase -- which would apply to about 7 million students -- was an economic issue. At the same time, the Education and Treasury Departments released a report calling higher education critical for increased earnings and social mobility and blaming state cuts for driving up tuition at colleges and universities. "Where we make our investments demonstrates our priorities," the report's authors wrote. "In order to ensure access to higher education, we must all do our part toward our shared responsibility to make these critical investments in today’s students and tomorrow’s workers."