[elklindo69]

WASHINGTON — The U.S. House of Representatives approved a GOP-backed student loan bill Thursday to address an impending July 1 interest rate hike on subsidized Stafford college loans by tying future interest rates to the market instead of allowing Washington to determine the rate.

The bill was approved on party lines, 221-198. Senate Democrats oppose the bill and the White House issued a veto threat on Wednesday, so its prospects are dim. Democrats want to extend current rates for two more years to allow more time to find a permanent fix.

However, if Congress doesn't act, Stafford loan rates will double from 3.4% to 6.8% this summer. About 7 million college students benefit from Stafford loans.

[johnforbes]

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