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Republicans block bill to extend lower student loan interest rates
Photo credit: amNY
Senate Republicans blocked a White House-backed bill Tuesday that would extend a lower interest rate on government-subsidized student Stafford 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.
Congress has until July 1 to come to an agreement on either passing a bill or allowing interest rates to double.
It is expected that a bipartisan agreement will be reached, since both sides fear alienating the youth vote before the fall elections.
Here's what's at stake:
7M+ -- students currently have subsidized Stafford loans with a 3.4% interest rate.
6.4% -- Interest rates on these loans as of July 1, without a deal
$6B -- Amount required to cover the cost of extending the lower interest rate for one year
$1T -- Current student loan debt
(with Reuters)
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