WASHINGTON, DC
Thursday, June 21, 2012
President Obama renewed pressure on Congress to pass a law preventing student loan interest rates from doubling on July 1 from 3.4 percent to 6.8 percent on federally-subsidized student loans.
Republicans and Democrats widely agree that a bill needs to be passed. They disagree on how to pay for extending the rate cut, with House Republicans hoping to find the money in one of the President’s health care reform programs and Senate Democrats looking to eliminate payroll tax breaks for some businesses.
The House passed a version of the bill which would target reproductive and women’s preventative health care services to offset the cost. The President has threatened that version with a veto, though it is unlikely such a bill would pass a Democrat-led Senate.
