January 19, 2007

Democrats Look to Large Lenders to Help Pay for Plan to Cut Student-Loan Rates in Half

By STEPHEN BURD

The Democratic leaders of the U.S. House of Representatives are taking aim at the largest student-loan providers to pay for the lawmakers' plan to halve the interest rate on federal student loans.

Democratic lawmakers are planning to hold a vote this week on legislation that would gradually reduce the student-loan interest rate, to 3.4 percent from 6.8 percent, over the next five years.

In discussions with college lobbyists, aides to the Democratic leaders revealed how the

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