White House Backs Student Loan Compromise, Sanders Disputes

Jul 23, 2013

Credit Alan Cleaver/Flickr

The White House is urging Congress to pass a bipartisan compromise on student loans that would offer lower interest rates for the next few years. But Vermont’s junior Senator is critical of the deal.

The White House on Tuesday released a statement urging swift passage of the deal, negotiated over the last few weeks that would link student loan  interest rates to the financial markets. Vermont Independent Senator Bernie Sanders says the proposal will actually make the student financial burden worse.

Interest rates on subsidized Stafford loans doubled to 6.8 percent on July 1 because Congress did not act. Lawmakers say the rate is unacceptably high but they differ on how best to restore them.

The Associated Press contributed to this report. All Rights Reserved.