President Barack Obama and the presumptive Republican nominee for president, Mitt Romney, both support an extension of the interest limit on federal student loans. The cap is set to expire July 1, and would automatically double the Direct Stafford student loan rate to 6.8%. Extending the cap would require approval by Congress, where there is some support for the measure. Critics, however, question how the national budget would make up the $6 billion it would cost the treasury each year the cap is extended.

Related Summaries