A legislative package that passed by a two-vote margin in the House of Representatives Wednesday will cut $12.7 billion in student loan programs, the largest student loan cut in history.

The cuts, part of a budget reconciliation package intended to reduce federal spending, passed 214-212 in the House. The Senate’s version of the bill passed in early November.

ISU Director of Financial Aid Roberta Johnson said the cuts won’t keep students from attaining federal loans, but they will raise interest rates.

Johnson said student loan interest rates could increase from 4.7 percent, the current rate, to 6.8 percent by July.

ISU President Gregory Geoffroy said he was discouraged by the passage of the bill.

“It’s a terrible move,” Geoffroy said. “With rising tuition and rising debt load, this seems like the worst thing they can do for students.”

He said the cuts may directly impact ISU students.

“This certainly has the potential to affect Iowa State,” he said. “Anything that reduces the availability of financial aid can affect students here. It could even affect some students’ ability to attend the university at all.”

Warren Madden, vice president for business and finance, said the cuts will cost students.

“Obviously, reductions in student aid are going to increase costs to students,” Madden said. “It’s going to affect students’ ability to get the necessary funds.”

He said students should look for other avenues when in need of financial aid if their student loans become too expensive.

“As one source gets reduced, you need to see if you can offset that reduction with another source, such as scholarships,” he said. “Today, loans are being used more heavily, which presents a challenge.”

According to the Office of Student Financial Aid, 14,808 ISU students receive federal loans to help pay their college costs, totaling $84.6 million.

Cuts included in the bill will also affect areas such as health and human services programs, agricultural research and bank deposit insurance.