Fight over student loan rates intensifies

The partisan divide widened Tuesday over how best to lower interest rates on federal student loans that automatically doubled last week, with no compromise in sight ahead of a key Wednesday vote.

Senate Majority Leader Harry Reid, D-Nev., has proposed a one-year interest rate freeze at 3.4 percent on new federal Stafford loans – the same rate before it jumped to 6.8 percent on July 1. A vote on his proposal is expected Wednesday, though it’s doubtful it will get the 60 votes needed to pass, as few Republicans are expected to support it.