White House-backed budget cuts could mean that college students will pay more for their educations by scaling back federal student loans.

The proposal, supported by President George W. Bush and Congressional Republican leaders, will reduce federal student loan aid by $12.7 billion if the bill passes a vote in the House of Representatives. The legislation passed the U.S. Senate with a 51-50 vote, with Vice President Dick Cheney casting the tie-breaking vote.

The House vote could come as early as Wednesday, and with House approval, the legislation would be on track for Bush’s signiture.

In addition to federal loan aid cuts, the bill locks in higher interest rates for student loans. While student loans generally have lower interest rates than other loans and include stipulations for deferred payment, the new legislation would mean students would pay more interest for their loans.

If the legislation becomes law, student loan rates could be reset to about 6.5 percent on July 1, when interest rates are ordinarily reset. Current rates are about 5.5 percent, depending on the loan agency.

Critics of the legislation also point out that Pell grants remained capped at $4,050 per year, while nationwide tuition costs have continued to rise.

The Campaign for America’s Future says that Tennessee students could pay up to $1,758 more in student loan payments if the legislation is approved.

“This budget plan makes it harder for families to pay for college in Tennessee,” said Toby Chaudhuri, communications director for the Campaign for America’s Future. “This (need for a rate increase) isn’t a money problem. It’s a Republican values problem.”

But President Bush says that the legislation will not affect students. Bush says the legislation is a budget reform, not a cut.

Bush told an audience at Kansas State University Jan. 23 that the legislation seeks to cut costs and make the student loan program work more efficiently.

“We’re just making sure it works better,” Bush said. “We’re not taking people off student loans. We’re saving money in the student loan program because it’s inefficient.”

Democrats stand opposed to the cuts. Tennessee Democratic Reps. Harold Ford Jr. and John Tanner both spoke out against the resolution, saying that it is irresponsible to financially burden students for the government's budget failures.

Tennessee Republican Rep. Zach Wamp supports the measure.

The bill is expected to pass a vote in the Republican-controlled House of Representatives.