Obama To Hold Student Loan Event
- Student loan interest rate again a top political issue
- Student loan interest rate proposals from House Republicans and some Senate Democrats
- House panel votes on student loan interest rates, transparency study
- CBO estimates costs and savings of changes to loan programs
- Senate said to be near compromise on interest rates
WASHINGTON -- With one month remaining until the interest rate for subsidized Stafford loans is set to double from 3.4 percent to 6.8 percent, President Obama will gather students today at the White House to call on Congress to act to prevent the increase, the White House announced Wednesday. Obama and Congressional Republicans have both proposed long-term fixes to the problem that would be based on the interest rates for Treasury bonds, but can't agree on the specifics of the plans -- such as whether the rate should vary from year to year for all borrowers or remain fixed over the life of the loan. Meanwhile, Congressional Democrats want to postpone the increase for a year or two to give themselves time to rewrite the Higher Education Act.