Senate Effort To Keep Student Loan Rates Low Fails

WASHINGTON (July 10, 2013)--The White House and most U.S. Senate Democrats favored restoring interest rates on subsidized Stafford loans to 3.4 percent for another year, but on Wednesday lawmakers were unable to muster the necessary 60 votes to overcome a procedural hurdle.

That leaves interest rates at 6.8 percent, which leaders from both parties say is unacceptable.

Interest rates doubled on July 1 because Congress failed to send a bill to President Barack Obama for his signature.

Few students so far have been affected because few sign their loans during the summer, but roughly a quarter of all federal lending is through the program and the new rates could affect millions of students.


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