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Senate defeats Democratic, Republican loan plans

Posted at: 06/06/2013 12:07 PM
By: Associated Press



Senators have failed to advance dueling measures that would have kept interest rates on some student loans from doubling on July 1.
    
The Democratic-controlled Senate on Thursday considered competing proposals that would have kept interest rates on new subsidized Stafford loans from doubling to 6.8-percent but rejected both.
    
Senate Democrats' plan would have given lawmakers a two-year window extension of the current rates so they could try to write a comprehensive overhaul.
    
The Senate Republicans' proposal would link student loan interest rates to the financial markets. Rates would have been lower in coming years but would rise as the economy improves.
    
The chairmen and ranking members from both chambers' education committees are looking to pass measures quickly and then resolve differences later.