WASHINGTON, D.C. – A few Democrats joined Senate Republicans on Wednesday to use a procedural vote to block a plan that would have temporarily restored a lower interest rate on federal student loans.
The proposal, co-sponsored by U.S. Sen. Robert Menendez and other Democratic leaders, would have extended the 3.4 percent interest rate on federally-subsidized student loans for another year while lawmakers worked towards a longer term solution. Rates increased to 6.8 percent on July 1.
“The failure to provide a one-year extension of lowered student loan interest rates is nothing short of a slap in the face of students and middle class families who are now carrying an additional $1,000 annual burden since interest rates doubled last week,” said Menendez. “It’s poor economic policy to overburden middle class families, students and graduates instead of continuing relief for them while we work toward comprehensive ways to address the rising cost of higher education.”
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