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Show High rates cut student loans WASHINGTON-(CPS)-The N'ixon Administration has found itself it-self in a dilemma over student loans and interest rates. The Administration is beginning to draft legislation on the student loan situation as members of Confess Con-fess have begun receiving mail irom middle-class constituents 'ho are having trouble finding enough money to pay for college education. The federal government has teen providing some form of financial finan-cial aid to about 30 per cent of the country's undergraduate students through direct grants to low income in-come students, work-study grants, direct loans for students in the middle income classes, and guaranteed guaran-teed loans supposedly available to all students. Under the guaranteed loan setup set-up the federal government pays the interest while the student is in school. The student pays the loan ff afterwards. Presently, however, 'here is a seven per cent interest ceiling on the loans, and the banks don't like it. They can get more return re-turn for their money other places. An Administration proposal would raise the seven per cent ceiling on EMranteed loans to satisfy the bankers, but the question remains: "ho should pay the additional in-"rest, in-"rest, the student or government, tule the student is in college? The Administration had put mney in its budget for a small in-Cease in-Cease in student grants, but it had nped to cut back its spending on ltulent loans. The matter is being studies by Rep. Edith Green's -Ore.) special House Education committee, as well as by the ministration which maintains it 'ants to provide financial aid to nre students if possible. |