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

Print Subscription

Digital Subscription

Already have an account? Log In Now.