The House Republicans have proposed requiring borrowers to repay the interest accrued during that six month period.
Republicans say the elimination will provide significant federal savings--$3.5 billion--and will not significantly increase the burden on students.
A spokesperson for Rep. John Porter (R-III.) said elimination of the grace period will amount to an added cost of $4 per month for students who have graduted.
According to Nixon, reports indicate that the Senate may also try to eliminate the six-month grace period.
White House Study
A recent White House study has attempted to translate the impact of the Republican proposals to Harvard students.
According to the study, sponsored by the Department of Education and released last week, Harvard students could pay as much as $16.3 million more for federal college loans if Republican proposals become law.
A student who borrows $17,125, in subsidized loans the maximum allowable over four years--would see an increase of $1,426, according to White House calculations.
Meanwhile, a student not supported by his or her parents who borrowed the maximum of $35,125 over four years would see an increase in loans costs of $3,100, according to the study.
And a graduate student who borrows the maximum of $34,000 in subsidized loans would see a cost increase of $9,400, according to the White House.
"These proposals are a direct attack on our nation's students," President Clinton said in a statement last week.
"If Congress approves these changes, the dream of a college education will become a financial nightmare for many young people and their parents," he added.
Republicans have blasted the White House and Congressional Democrats for employing a "scare campaign" and spreading misinformation in the battle over financial aid funding.
GOP leaders say balancing the budget and stopping the accumulation of national debt is best, in the long run, for today's students.
"We believe that balancing the federal budget may well be the single best thing we can do for our children, and we are proud of the fact that we are getting the job done," said Rep. Bill Goodling (R-Pa.), chair of the House Economic and Educational Opportunities Committee.
Overall, however, University officials are hopeful that financial aid levels can be maintained as the debate rages into the next century.
"On balance, I would say [there is] pretty good support, bearing in mind that one, it's not over yet, and two, it's only year number one out of seven," Rudenstine said last week.