Senate Fails to Restore Low Student Loan Rates - NBC Right Now/KNDO/KNDU Tri-Cities, Yakima, WA |

Senate Fails to Restore Low Student Loan Rates

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WASHINGTON – The Senate has failed to restore lower interest rates on student loans.

The White House and most Senate Democrats favored restoring interest rates on subsidized Stafford loans to 3.4 percent for another year. But lawmakers Wednesday couldn't muster the necessary 60 votes to overcome a procedural hurdle.

That left interest rates at 6.8 percent, which leaders from both parties call unacceptable.

Interest rates doubled on July 1 because Congress was unable to send a bill to President Barack Obama for his signature.

Few students so far have been affected because few sign their loans during the summer. But roughly a quarter of all federal lending is through the program and the new rates could affect millions of students.

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