Senate rejects plan to roll back student loan rate hike
WASHINGTON (CNN) — A Democratic measure to temporarily reverse the doubling of interest rates on millions of government-subsidized student loans fell short in the U.S. Senate on Wednesday, but negotiations continue on a possible compromise to halt the increase.
Proponents needed 60 votes to succeed with the plan to roll back rates but only got 51 with the tallying splitting along party lines.
Interest rates doubled to 6.8% on subsidized Stafford loans on July 1 because of congressional inaction to hold them steady heading into the next school year.
Republicans are pushing for a broader approach, saying any new costs for government-backed loans had to be covered with budget cuts in other programs.
Senate Majority Leader Harry Reid said negotiations on a compromise were making progress.
This summer's fight is similar to the one that took place last year when Congress acted to avert an increase in the middle of a presidential campaign.
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