Senate showdown over student loan rates looms

Federal student loan rates are scheduled to double July 1 The rate would go from 3.4 to 6.8% Democrats and Republicans are divided on how to fund an extension of the lower rate Sen. Jon Kyl says Republicans want a Senate vote on their plan Washington (CNN) -- The fight over a potential doubling of student loan interest rates this summer hits the Senate
floor Tuesday with Republicans promising to block a White House-backed plan unless Democrats allow a vote on a GOP alternative. Interest rates on federal student loans are scheduled to rise to 6.8% from the current 3.4% in July unless Congress acts. But Democrats and Republicans disagree over how to offset the $6 billion it would cost to keep the rates down. Democrats want to eliminate a tax break for some corporations, while Republicans want to pull funds from a preventative health care fund set up under the health reform law. Arizona Sen. Jon Kyl, the second-ranking Senate Republican, said Monday he believes a tough stand is necessary on this issue and will lead to compromise. "We'll defeat cloture," Kyl said, using the legislative parlance for a key procedural vote scheduled for Tuesday that requires 60 votes to succeed. If Republicans prove Democrats can't move a bill without GOP support, "I presume leaders in the House and Senate will get together and find a way to ensure the interest rate doesn't double," Kyl said. An aide to Senate Majority Leader Harry Reid, D-Nevada, said negotiations over the issue are still under way. Kyl said Republicans are "really disappointed" Reid has not agreed to hold a vote on the Republican funding alternative. President Barack Obama, meanwhile, has led a high profile, multi-pronged lobbying push to pressure Republicans to support the Democrats' bill. On Friday, he urged high school students to e-mail, tweet and teach their parents to tweet a message to Congress. "We can't price the middle class out of a higher education," the president said. "That's why we've got to make college more affordable." The Republican-dominated House has already passed a version of the bill -- one that the White House warned late last month would be vetoed by the president if it also clears the Senate. The House version passed 215-195 on a largely party-line vote. if(typeof CNN.expElements==='object'){CNN.expElements.init();} CNN''s Ted Barrett contributed to this report.

Senate showdown over student loan rates looms 2012-05-08T00:15:00-07:00 Rating: 4.5 Diposkan Oleh: Undercover 999