Rep. Kline (R., MN) has introduced the Smarter Solutions for Students Act, which would raise interest rates on some student loans, but cap Direct Stafford loans at 8.5%, and cap Direct Plus loans at 10.5%. The Obama Administration is opposed to the legislation, noting in a statement on the legislation that:
"While the Administration welcomes action by the House on this issue, H.R. 1911 is the wrong approach. First, the bill would not guarantee low rates for today's students. A rate that continues to vary after the loan has already been taken out would create uncertainty and lessen transparency for students and their families who are making decisions about borrowing for college. Second, the bill's changes would impose the largest interest rate increases on low- and middle-income students and families who struggle most to afford a college education. Third, the bill does not include the President's proposal to extend repayment options to borrowers who have already left school and often face the same debt burdens as current and future students. Finally, the Administration believes that student loan interest rates should not be raised to reduce the deficit."