Congress, College Tuition | featured news

Congress may have averted a doubling of interest rates on millions of new federal student loans, but the fix is only for a year, leaving students on edge over whether they'll face a similar increase next summer.

Facing weekend deadlines for action, congressional leaders have agreed to deals overhauling the nation's transportation programs without a Republican provision forcing approval of the proposed Keystone XL oil pipeline, and avoiding a doubling of interest rates for new student loans, congressional officials said Wednesday....

Congressional bargainers seem near an agreement that would avert a July 1 doubling of interest rates on federal loans to 7.4 million college students and end an election-year battle between President Barack Obama and Congress, Senate aides from both parties said Friday....

The political battle over President Obama’s plan to keep student loan interest rates from skyrocketing escalated as Senate Republicans blocked a Democratic proposal to tax wealthier earners to pay for it.

They want Congress to temporarily extend the current low rate on subsidized undergraduate Stafford loans.

President Obama kicked off a week of appeals to young voters on Saturday by urging Congress to maintain the interest rate on student loans, keeping the costs of college stable.

The measure ends billions of dollars in subsidies paid to commercial banks for making federally backed student loans in which they bore almost no risk, and expands direct federal loans to students instead.