Senate panel votes to raise college loan costs

The Associated Press But even the committee's chairperson, who struggled for a week to gain votes from fellow Republicans, predicted her hard-won compromise won't last in its current form. "There will be changes on the Senate floor," said Sen. Nancy Kassebaum (R-Kan.), who heads the Labor and Human Relations Committee. She said she may support them. "This is not easy," Kassebaum said. "No one likes making these changes." The issue has proved troublesome because Senate Republicans generally want to cut less from student loans than House Republicans. Under the seven-year plan to balance the budget, however, Republicans in the two houses agreed to an amount of $10 billion. Student loans are a crucial concern for middle-class parents putting kids through college. The amount of federally guaranteed loans has jumped in recent years, as more students attended college and tuition costs rose. Democrats opposed Kassebaum's plan from the start. "It is wrong to rob student loans to pay for tax cuts for the rich," said Sen. Edward Kennedy (D-Mass.) But Kassebaum also faced objections from fellow Republicans. Sen. Jim Jeffords (R-Vt.) supported Kennedy's calls for fewer cuts but allowed Kassebaum's proposal to move to the full Senate, 8-7, by not voting. Jeffords said he will fight the cuts on the Senate floor. Other Republicans, although in favor of the overall cuts, had tried unsuccessfully to eliminate a proposed new fee on colleges. "Once something like this starts, it is a slippery slope," said Sen. Mike DeWine (R-Ohio). Kassebaum predicted the group, led by Sen. Dan Coates (R-Ind.), would successfully strip the .85 percent fee from her proposal during full Senate debate. Colleges have lobbied hard against it. "Higher Ed has been taking a hit, and it should stop," said David Warren, president of the National Association of Independent Colleges and Universities. Coats, turning to students crowded along a back wall, called the changes a small price to ensure their children and grandchildren are not drowned in debt from federal budget deficits. But many students were not convinced, cheering for Democrats and occasionally hissing Republicans.