HOW THEY VOTED
The Democratic plan
Ohio
Sherrod Brown, yes; Rob Portman, no
Georgia
Saxby Chambliss, no; Johnny Isakson, no
Texas
John Cornyn, no; Ted Cruz, no
Florida
Bill Nelson, yes; Marco Rubio, no
The Republican plan
Ohio
Sherrod Brown, no; Rob Portman, yes
Georgia
Saxby Chambliss, yes; Johnny Isakson, yes
Texas
John Cornyn, yes; Ted Cruz, yes
Florida
Bill Nelson, no; Marco Rubio, yes
College students faced increasing uncertainty about the cost of new student loans after senators failed Thursday to advance partisan proposals to keep interest rates from doubling on July 1.
Dueling measures in the Senate would have kept interest rates on some student loans from moving from 3.4 percent to 6.8 percent, although separate Republican and Democratic proposals each failed to win 60 votes needed on procedural votes.
The failure means that unless lawmakers can find a rare bipartisan agreement, students are likely to face higher rates on new subsidized Stafford student loans this fall.
“I cannot understand why we’re having a problem with this,” Senate Majority Leader Harry Reid, D-Nev., told reporters after the vote.
The top Republican on the Senate education panel seemed to share that frustration. “If we can’t agree on this, we can’t agree on anything,” said Sen. Lamar Alexander, R-Tenn. “This is a manufactured crisis.”
The failure comes just three weeks before interest rates increase on federally subsidized Stafford loans return to 2008 levels. For students who borrow the maximum amount every year, the rate shift would boost the cost of this year’s loans by more than $1,000.
“Congress must act immediately to stop the imminent doubling of interest rates on student loans,” the White House said in a statement.
Democrats in the Senate unsuccessful sought a two-year extension of the current rates while lawmakers write a comprehensive overhaul of the student loan process.
Republicans, meanwhile, wanted to link interest rates to financial markets. Under their plan, interest rates would be based on the 10-year Treasury note and, once the rates were set each year, they would remain there until the loans were paid off.
The GOP parameters were not that different from President Barack Obama’s budget proposal, which also included interest rates linked to markets, or a version House Republicans have passed through their chamber.
Obama has threatened to veto House Republicans’ legislation.
The chairman of the House Education and the Workforce Committee, Rep. John Kline, R- Minn., said he does not plan to revisit his legislation and that it’s up to Obama to negotiate a deal or get the blame for higher rates.
“It leaves us with one body in Congress — the House — having passed legislation … that would provide the long-term fix to the student loan interest rate problem,” Kline told reporters.
That fact is little consolation for students already carrying debt and likely to pick up more before graduation.
“I don’t think that many students know it’s going to increase,” said Kyle Pendergast, the student body president of Indiana’s Purdue University. “I would say that a lot of students won’t notice until they start paying back their loans. And at that point, it will be too late.”
Despite Thursday’s twin failures, lawmakers said this would not be the final word even as the clock ticked toward July 1.
Aides to Sen. Joe Manchin, D-W.Va., said he would try to find a comprehensive overhaul in the next three weeks.
“I would hope that they come back to us with something that is reasonable,” said Reid, D-Nev.
About the Author
