As you may know, the U.S. Senate has failed to pass a bill to deal with the impending doubling of the interest rate of new Stafford subsidized student loans. That leaves the rate to double to 6.8 percent unless lawmakers can strike a deal.
(I’ve covered the efforts of U.S. Democratic Rep. Keith Ellison of Minneapolis on the matter, as well as a forum he held at the U.)
Democrats have been trying to get a two-year extension of the current rates to buy time for a comprehensive solution. Republicans have wanted to establish a floating market-based rate — an idea similar both to that proposed in the Obama budget, and the one passed by the House. The two sides differ on rate details, however.
U.S. Republican Rep. John Kline of Minnesota told Yahoo! in an interview posted yesterday:
“The House of Representatives has passed legislation that will fix this [problem] and the Senate, as is so often the case, is wringing its hands… It would be helpful… if the president would reengage here and say look, we can work a compromise here, we’re pretty close, let’s get out there and get a long-term fix.”