WASHINGTON, June 22 (UPI) -- House Republicans Saturday accused Senate Democrats of blocking a GOP plan to prevent interest rates from doubling on student loans.
House Republicans, while siding with a proposal by President Barack Obama, claimed Senate Democrats were being obstructionists, The Hill reported.
Unless the Senate acts by July 1, rates for government-subsidized student loans will jump from 3.4 percent to 6.8 percent.
The House bill, passed last month, would allow rates to fluctuate but not exceed 8.5 percent. Rates for Direct PLUS loans would be capped at 10.5 percent.
Obama agrees with the House plan, with his budget plan tying interest rates to the market, asserted Rep. John Kline, R-Mont., in delivering the GOP's weekly address.
Obama's proposal would tie student loan rates to the 10-year rate on Treasury bills plus 0.93 percent. Interest would be capped at 10 percent of the borrower's income.
The White House last month threatened to veto the GOP plan, but House Speaker John Boehner, R-Ohio, last week sent a letter to the president asking his help in resolving the impasse with the Senate.
Senate Democrats met with White House officials Thursday on a plan similar to what the president has proposed.