In a mostly party-line vote Thursday, the U.S. House passed a bill introduced by Minnesota Rep. John Kline, R-2nd District, that would tie student loan interest rates to market rates.
Student loan interest rates are set to double on July 1 if Congress doesn't act. Kline said the tying the interest rates to the market would make life easier for college students.
"They shouldn't have to deal with the uncertainty that comes with waiting for politicians to cobble together another temporary fix to keep interest rates in line with the market," Kline said.
But Rep. George Miller, D-Calif., says rates would rise too high if the measure became law.
"People won't believe this but we're debating a bill to make it more expensive for families and students to achieve a college education," Miller said.
President Barack Obama has also proposed using market rates for student loans but vowed to veto Kline's bill if it arrived at his desk. Obama said it didn't do enough to protect students from spikes in rates.