Senate Republicans on Tuesday blocked a White House-backed bill that would end a tax break for the wealthy to fund an extension of low-interest rates for federal student loans.
On a mostly party-line vote of 52-45, backers of the measure fell eight votes short of the 60 needed to clear a Republican procedural roadblock.
Regardless, both sides are expected to reach a compromise to prevent a doubling of the 3.4 percent interest rate by July 1, largely because lawmakers do not want to rile young voters in advance of the November 6 congressional and presidential elections. Reuters
White House statement:
It is extremely disappointing that Republicans in the Senate today voted to ask millions of students to pay an average of $1,000 each in order to protect a loophole that allows millionaires to dodge payroll taxes. On July 1, more than 7.4 million students across the country will see their interest rates double unless Congress acts. We’re pleased that despite failing to address it in their budget, Republicans in Congress now profess to be concerned about this coming rate hike. But now it’s time for them to stop refighting old political battles and prove they’re serious by proposing a real solution to keep rates low for students without burdening middle class families or undercutting preventive health care for women. We look forward to continuing to work with Congress to prevent rates from doubling and ensure that students continue to get a fair shot at an affordable education.
