Senate Panel Approves Cuts In Federal Student Loans

Dozens of students chanted “Don’t raid our aid” Tuesday as a Senate panel met and narrowly approved a Republican plan to cut $10.1 billion in federal student loans.

As several students hissed, the Senate Labor and Human Resources Committee voted 8-7 along party lines to endorse the Republican package, aimed at helping to balance the federal budget within seven years.

It includes a provision requiring colleges to pay an unprecedented federal fee of 0.85 percent on the amount of student loans their students receive.

Sen. Edward M. Kennedy, the committee’s highest-ranking Democrat, denounced the GOP initiative as “the greatest cut in the history of the student aid program.”

He said the vote would drive up higher education costs between $5,000 and $7,500 for the average student receiving federal assistance.

Administration officials said President Clinton would veto the proposed cuts.