Republicans to back Obama's student loan idea - FOX 8 WVUE New Orleans News, Weather, Sports

Republicans to back Obama's student loan idea

Updated:

WASHINGTON (AP) - 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.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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