Bill would stop loan interest hike

PROVIDENCE, R.I. (AP) - Rhode Island U.S. Sen. Jack Reed is praising President Barack Obama for backing efforts to prevent interest rates on student loans from doubling.

The interest rate on a popular federally subsidized student loan will jump from 3.4 percent to 6.8 percent on July 1 unless congress acts on legislation that Reed introduced in January. The bill's co-sponsors include fellow Democratic U.S. Sen. Sheldon Whitehouse.

Connecticut's Democratic U.S. Rep. Joe Courtney authored the House version of the bill.

The rate hike affects new subsidized Stafford loans, which are issued to low- and middle-income undergraduates.

Obama used his weekly radio and Internet Saturday to depict Republicans as obstacles to an affordable college education and calling on Congress to extend a law that cuts the interest rates.

College-aged voters are also a critical constituency for the Obama campaign.