Senate defeats Republican student loan plan

WASHINGTON (AP) — The Democratic-controlled Senate has voted down a Republican proposal to link student loan interest rates to the financial markets.

The Senate on Thursday was scheduled to next take up Democrats’ proposal that would extend current interest rates on new subsidized Stafford loans for the next two years at 3.4 percent. Without congressional action, the rates are set to double on July 1.

Senate Republicans sought to peg interest rates to 10-year Treasury notes, meaning rates would be lower in coming years but rise as the economy improves. It is similar to a bill the Republican-led House passed earlier that President Barack Obama said he would veto.

The chairmen and ranking members from both chambers’ education committees were looking to pass measures quickly and then resolve differences later.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s