Obama threatens veto of Republican student loan plan

By Philip Elliott

Associated Press

Published: Wednesday, May 22 2013 2:10 p.m. MDT

President Barack Obama speaks in the East Room of the White House, Thursday, June 21, 2012, in Washington.

Carolyn Kaster, Associated Press

Enlarge photo»

WASHINGTON — President Barack Obama is threatening to veto House Republicans' student loan bill.

The White House Budget Office said Wednesday the GOP plan does not guarantee current low interest rates for students and creates uncertainty for them. The budget office says that if Obama were presented the current bill, officials would urge a veto.

The Republican-led House on Thursday was expected to pass a bill that would keep interest rates on subsidized Stafford loan rates from doubling on July 1. In exchange, interest rates on new loans would be variable, based on the markets, and change annually.

House and Senate Democrats have urged a two-year extension of current rates while lawmakers work on a long-term solution.

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