Republicans Show Rare Approval of President Obama's Student Loan Proposal

By: Associated Press
By: Associated Press

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.

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  • by Marry Location: California on May 10, 2013 at 01:21 AM
    Having a good education seems to be a kind of luxury nowadays. Tuition together with obligatory fees are too high and that is the problem. To my mind education has to be accessible for every person who wants to get extra knowledge. It would be fairly. I don’t understand why young people together with their parents have to collect money or sign up for CashLoansOnlineFast with high interest rates. The majority of students are far to finish even first year studying. It could lead to mass illiteracy at least.
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