Interest rates on new student loans are likely headed higher after the U.S. Senate failed last week to advance proposals to keep them from doubling July 1.
Dueling measures would have kept interest rates on some student loans from moving from 3.4 percent to 6.8 percent, although separate Republican and Democratic proposals each failed to win the 60 votes needed on procedural votes. The failure means that unless lawmakers can find a rare bipartisan agreement, students are likely to face higher rates on new subsidized Stafford student loans this fall.
Top Democrats and Republicans on the Senate education committee expressed frustration with the inability to pass a plan.
