House Passes Student Loan Bill, but Bush Opposes

The House of Representatives yesterday, in a strongly bipartisan 356-71 vote, passed H.R. 5, a bill lowering interest rates on certain student loans. The White House, however, issued a statement expressing President Bush’s opposition to the bill.

"Reducing student loan interest rates would direct Federal subsidies to college graduates, not to students and their families who are struggling to meet current and future educational expenses," said the president, in a statement released through the Department of Education. "Instead, the Administration would support efforts to direct savings to additional grant support for low-income students."

The bill, as passed by the House, would reduce interest rates only on need-based, federally subsidized Stafford and Perkins student loans. Interest rates on unsubsidized loans, those most often taken out by the parents of students, would not be reduced.

President Bush stopped short of saying the he would veto the bill, should it be passed by the Senate, stating, "The Administration will continue to work with Congress on a comprehensive approach to improve college access for the neediest students, in a fiscally responsible manner."

The bill won the support of 124 Republicans, and the total 356 votes in favor is more than the 290 votes required to override a presidential veto in the House.

Student Aid Primer

Also See:
House to Vote on Reducing Student Loan Rates
Democrats' 'First 100 Hours' of Big Bills
Bush May Veto More Bills from New Congress