No Resolution In Sight on Interest Rate
- Senators reach long-term deal on student loan interest rates
- Obama said to propose market-based interest rate for student loans
- Student loan interest rates will double July 1
- Senate said to be near compromise on interest rates
- Arne Duncan and senators agree compromise is possible on student loan interest rates
WASHINGTON -- Eight days after the interest rate on new, federally subsidized student loans increased to 6.8 percent, the two parties in Congress seemed further away than ever on a compromise that could retroactively undo the increase. A bipartisan coalition of Senate Republicans, Independents and Democrats have put forward a bill for market-based interest rates that has much in common with President Obama's plan, but the Senate Democratic leadership would rather extend the current 3.4 percent interest rate for another year -- a proposal that's a nonstarter with Republicans in the House and Senate.
The Senate will vote on the one-year extension bill today.