Top congressional Republicans are making a new offer to President Barack Obama in the fight over interest rates for 7.4 million students with federal college loans.

Until now, the two sides have agreed that the current 3.4 percent interest rate for subsidized Stafford loans should be extended for another year, rather than doubling as scheduled on July 1.

But they have fought over how to cover the $6 billion cost.

House Speaker John Boehner, Senate Minority Leader Mitch McConnell and other leaders sent a letter to the president Thursday. They are offering a collection of savings to pay the cost, including making it harder for some states to collect Medicaid reimbursements from the federal government.

Several proposals are modeled on savings Obama has proposed in the past.

 

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