WASHINGTON (AP) - House Republicans are looking at a student loan system that would give students lower interest rates in coming years but would cost students more over time.
Members of the Republican-led House Education and Workforce Committee plan to finish work on a bill that would keep interest rates from doubling on new subsidized Stafford loans on July 1. The GOP measure provides lower rates immediately and for the next few years, but the plan also comes with potentially higher costs for some students beyond that.
Democrats plan unified opposition.
Under the GOP proposal set for discussion Thursday, student loan rates would be reset every year and based on 10-year Treasury notes, plus an added percentage. It offers a good deal now, but quickly balloons.