House OKs Variable Rate Student Loans 05/23 12:36
WASHINGTON (AP) -- The U.S. House says student loans' interest rates should
be pegged to the financial markets.
The House on Thursday passed a bill that would tie interest rates to 10-year
Treasury bills. The measure would head off a doubling of interest rates on
subsidized Stafford student loans come July 1. But the bill faces a veto threat
from President Barack Obama.
The bill would offer college students a better rate at first but the rates
could climb in coming years.
Democrats say there is no support for the bill in the Senate that they
control and are urging lawmakers to extend the current 3.4 percent interest
rates for two more years.