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The student loan measure has been a political battlefield for months, with President Barack Obama touring the country to accuse Republicans of not acting to prevent the rate increase. Though some GOP lawmakers have opposed the rate freeze, Republican presidential challenger Mitt Romney and Republican congressional leaders said two months ago that they supported it, and the sole remaining fight has been over how to pay for it. The student loan measure was projected to cost $6 billion. Under the compromise, $1.2 billion would be paid for by limiting federal subsidies for undergraduates to a maximum of six years. Currently those subsidies
-- a period during which the government does not charge interest -- can last as long as it takes an undergraduate to get a diploma. Another $5 billion would come from changing how companies calculate the money they must set aside for their pension programs. The changes would make their annual contributions lower and less variable, in effect reducing their tax deductions. An additional $500 million would come from pegging to inflation the fees companies pay to federally insure their pensions. Aides said the pension proposals might end up raising more than $18 billion in the final legislation, with the excess helping pay for the transportation measure. The federal flood insurance program, which protects 5.6 million households and businesses, has gone deeply into the red from claims after 2005's Hurricane Katrina. Senate legislation would try to return the program to fiscal soundness by allowing premium increases and reducing subsidies for vacation homes.
[Associated
Press;
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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