The White House has threatened to veto a student loan bill sponsored by U.S. Rep. John Kline, R-Minn., which would replace the current fixed rates with floating rates tied to government borrowing costs.
Kline expressed disappointment in the White House action, saying his bill is based on President Obama’s own proposal to move to a market-based interest rate, rather than one dictated by Congress. The House is scheduled to vote on Kline’s plan on Thursday.
But Democrats and student groups worry about subjecting students to variable interest rates without easier repayment terms and other protections in the White House plan.
Democrats have rallied around a plan to freeze the current government-mandated rate of 3.4 percent for two years to buy time for the long-term solution both sides say they want. Without some agreement, the rate is scheduled to double to 6.8 percent on July 1.
More from Star Tribune
More From Hot Dish Politics
A DFL state Senator has asked that a sign hung in the window of a Republican colleague be taken down because it might violate a zoning ordinance.
If U.S. Rep. Keith Ellison vacates his congressional seat for top DNC job, state Sen. Scott Dibble will run, reversing a previous decision to stay out of the race to replace him.
Rep. Jim Nash, R-Waconia, called it a "crushing" tax on local purveyors of fine cigars and their customers.
Sen. Franken to vote against Education Secretary nominee
Still a sliver of possibility, however.