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Deal on student loans stumbles on costs

July 11, 2013 • Business


House Speaker John Boehner of Ohio gestures during a news conference on Capitol Hill in Washington, Thursday, July 11, 2013, where he talked about immigration reform, student loans, and Obamacare. The GOP leadership rejected the immigration bill passed by the Democratic-controlled Senate. Boehner said House committees will continue their work on a step-by-step approach to immigration reform, calling the current laws a broken system. (AP Photo/J. Scott Applewhite)

WASHINGTON (AP) — An emerging deal to lower interest rates on student loans hit a major obstacle Thursday after lawmakers were told it carried a $22 billion price tag over the next decade.

The proposal was designed to offer Democrats the promise that interest rates would not reach 10 percent and to give Republicans a link between borrowing terms and the financial markets that they sought. But at that cost, the bipartisan coalition behind it decided to push pause and return to negotiations to bring that cost down.

The estimate was described by a congressional aide involved in the negotiations. The aide was not authorized to discuss the proposal by name and insisted on anonymity because the Congressional Budget Office report had not yet been widely released.

The unexpected cost estimate was unlikely to end talks Login to read more

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