Fight over student loan rates intensifies

Published July 9, 2013 4:00am ET



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.

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