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Obama wants Congress to freeze interest rates on student loans

President Obama has begun a push for Congress to freeze interest rates on certain student loans, a move aimed at appealing to the middle-income and younger voters who are key to his re-election strategy.

Under current law, interest rates on federally subsidized Stafford loans are scheduled to increase to 6.8 percent on July 1 from 3.4 percent. The rate increase would affect about 7.4 million students, according to the White House.

"We have an immediate crisis," Education Secretary Arne Duncan said at a White House briefing Friday. "College has to be affordable for the middle class and for people who aspire to be middle class."

The president proposed Congress act to freeze the rates in his fiscal 2013 budget. The Congressional Budget Office estimates the one-year freeze would cost $6 billion.

Obama will re-emphasize his pitch in front of college audiences in the battleground states of North Carolina, Iowa and Colorado next week. He'll also make an appearance on the NBC television program, "Late Night With Jimmy Fallon" to reach a wider audience of young voters.

Obama has framed his re-election message to highlight differences with Republicans on budget priorities. Over the past month, he's frequently talked about his plans to maintain federal support for education, infrastructure and development of alternative energy while accusing his opponents of sacrificing those programs to provide tax cuts for top earners.

In the 2008 election, voters in the 18-24 age group supported Obama 66 percent to 32 percent for Republican presidential nominee John McCain, national exit polls showed.

Rep. John Kline, R-Minn., chairman of the House Education and Workforce Committee, said "lofty campaign promises" have put lawmakers in a bind.

"We must now choose between allowing interest rates to rise or piling billions of dollars on the backs of taxpayers," he said in a statement. "I have serious concerns about any proposal that simply kicks the can down the road and creates more uncertainty in the long run."

The average cost of tuition and fees at a public, four-year college has almost tripled since the 1995-96 academic year and has more than doubled for a private school education, according to data from the College Board, a New York-based nonprofit group whose members include universities.

Educational-loan debt has ballooned to $1 trillion, surpassing the amount owed on credit cards in the United States, according to the Consumer Financial Protection Bureau.