Senate procedural vote on loans set for Wednesday

Monday, July 08, 2013

With a backdrop of college students on the step of the House of Representatives, Speaker of the House John Boehner, R-Ohio, and GOP leaders talk about the politics of federal student loan rates which doubled on July 1, at the Capitol in Washington, Monday, July 8, 2013. (AP Photo/J. Scott Applewhite)

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WASHINGTON -- The Senate is trying again on student loans.

Senate Majority Leader Harry Reid on Monday scheduled a procedural vote for Wednesday on a bill restoring the interest rate on subsidized Stafford loans to 3.4 percent for one year. Interest rates doubled to 6.8 percent last week because Congress didn't avert a rate hike built into the law.

House Republicans have passed a bill that would link rates to the financial markets and keep rates low in coming years. Rates would increase if the economy improves.

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Democrats opposed the GOP proposal but haven't found enough support to overcome Senate procedural hurdles. A previous attempt for a two-year extension failed to win enough support ahead of the July 1 deadline.

Congress can retroactively reduce interest rates. Few students sign loans before August.

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Tags:

republicans, democrats, congress, senate, loans, national/world