Time is ticking on potential legislation to prevent student loan interest rates from increasing this summer, after Senate Republicans blocked a Democratic bill that would extend a lower rate.
Interest rates on federal subsidized Stafford loans, cut to 3.4 percent in 2007, are slated to double to 6.8 percent on July 1 if no legislative action is taken to keep them low.
The New York Times reported the Senate held a divisive vote yesterday, disagreeing along party lines about where to make cuts elsewhere in the budget to allow the rates to remain low, which could cost up to $6 billion a year.
White House Press Secretary Jay Carney said in a statement it is disappointing that the parties could not come to a solution, but he also said he is pleased that Republicans have discussed alternatives.
President Barack Obama kicked off his campaign season last month visiting colleges and universities, urging students to tell their legislators not to double the rates.
Republican presidential candidate Mitt Romney also has voiced support for preventing the rates from doubling, but has not offered a compromise for the two parties.
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