Hotdish politics: Loan rate deadline looms large for colleges

WASHINGTON - University of Minnesota President Eric Kaler and University of Minnesota Duluth Chancellor Lendley Black will head to the steps of the Lincoln Memorial this week to ask Congress to focus on the needs of America's colleges and universities.

Kaler and Black are among dozens of college leaders in Washington this week to mark the 150th anniversary of the federal Morrill Act, landmark legislation that established land grant colleges in every state.

Organizers have billed the confab as a look back at what necessitated the legislation and a look ahead at what's needed to keep higher education viable.

While they're here, a looming deadline for Congress could dominate the conversation: Federal college loan rates are set to double July 1 unless lawmakers act.

The government-funded Stafford loans currently have a 3.4 percent interest rate; that will become 6.8 percent without congressional action.

More than 200,000 Minnesota students, and more than 2 million nationwide, will need to take out new federal loans this year, the White House estimates.

Most Democrats and Republicans agree that the rate should remain where it is and support at least a one-year extension, but they haven't been able to reach consensus on how to offset the estimated $6 billion cost.

Along the way, each side has accused the other of impeding progress and resisting compromise.

The debate has brought representatives from at least two student groups -- the Minnesota State University Student Association and the University of Minnesota Duluth's Student Legislative Coalition -- to D.C. to lobby the state's congressional delegation.

In turn, several members of the delegation took the issue back home to Minnesota, hosting forums and news conferences to connect with college-age voters, college leaders and parents pressed about the rising cost of a college education.

Now, with less than a week left before the loan rate deadline, D.C. is once again the battleground.