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President Obama Renews Calls to Stop Student Loan Rate Doubling

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.

Since raising the issue this spring, the President has made campaign and official visits to college campuses to push for a bill. Republicans have accused him of using an issue on which there is broad agreement on the principles but disagreement on the details for political gain. A Pew Research Study found that 66 percent of voters age 18-29 voted Democrat in 2008.

Updated: Thursday, June 21, 2012 at 3:28pm (ET)

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