House Backs Variable Rate Student Loans

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.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2449822, ~/Articles/ArticleHandler.aspx, 11/1/2014 5:56:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement