Senate to Let Student Loan Rates Double
No deal looks likely before looming July 1 deadline
By Newser Editors and Wire Services
Posted Jun 27, 2013 6:36 PM CDT
Tom Harkin and Jack Reed discuss a graph and legislation to try and prevent the increase in the interest rates on some student loans, June 27, 2013.   (Susan Walsh)

(Newser) – A compromise to keep student loan interest rates low proved unwinnable before Monday's deadline and interest rates on new loans are going to double — at least for a while — senators said today. Tom Harkin, the chairman of the Senate education panel, said none of the proposals being circulated among lawmakers could win passage, and he urged lawmakers to extend the current rates for another year when they return from recess on July 10. Harkin said his colleagues could retroactively lower the rates when they return from the holiday.

"Let's put this off for a year," Harkin told reporters. But many aren't willing to do that, either. "Last year we kicked the can down the road and passed a one-year extension," Richard Burr said. "Why would we make the same mistake again and just kick the can down the road another year?" Burr is among a group, led by Joe Manchin, pushing an alternative that would link student loan rates to financial markets, an idea some Democrats oppose but which President Obama has supported.

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Jun 28, 2013 3:55 PM CDT
Let's get this straight, the GOP wants to win national elections but they pissed of blacks with their support for the over turning on the civil rights act, they pissed off Latinos over immigration reform and now they are going to piss all the college students with double interest rates on student loans. Is there anyone left to piss off? These clowns are really the party of old white people.
Jun 28, 2013 2:02 PM CDT
Bailout Big Banks and Big Auto, but keep the ignorant youth shackled to insane debt that cannot be relieved even through bankruptcy. Coupled with false societal promises that college will lead to good jobs. Debt = Slavery. People think that slavery has ended, but it just changed forms. Economic slaves. Don't think. Just endless work to pay off your shopping and shop to fill the vacant husk you call a life. Always consume more.
Jun 28, 2013 11:10 AM CDT
These assholes are tripping over each other to get the Banksters' campaign donations...