Washington — A group of financial-aid officers is urging the federal government to delay its plans to reduce subsidies to student-loan providers, The Wall Street Journal reported today.

The U.S. Department of Education is scheduled this summer to alter its PLUS program, which allows parents to borrow money on behalf of their children while paying low interest rates and having higher consumer protection than they would get from a private loan. In a cost-cutting move, the department will force lenders to bid against one another to do business in each state, in theory driving down the cost of the subsidies.

The department has until July 1 to make final the regulations for the new bidding process, which would be more complicated to carry out than the current fixed-subsidy policy is. The group of student-aid officers, the National Association of Student Financial Aid Administrators, fears that winning bidders for the lending business in each state will not be chosen by the summer, when most families take out student loans.

After first voicing concerns to the Education Department, the group was told that only Congress could delay the subsidy cut because it stems from a bill enacted by the legislators in 2007. So the group wrote a letter this week to Rep. George Miller of California, chairman of the U.S. House of Representatives education committee.

A spokeswoman for Mr. Miller said the committee would look into the matter and work with the department to resolve the issue. The department said it would be able to complete the new regulations within a few weeks to ensure that the bidding takes place before the summer starts. —Megan Eckstein