Student loan rates doubled at the beginning of July, after Congress failed to reach a deal before the Fourth of July break. Politicians on both sides of the aisle agree something needs to be done to bring the borrowing cost for education back down, but neither side can agree on how to do that.
On July first, the interest rates on new student loans doubled from three-point-four percent to six-point-eight percent. On Wednesday, the Senate will vote on a Democratic proposal that keeps the rate at three-point-four percent for the next year.
There is doubt the bill will pass, as Democrats alone don't have enough votes to push the measure through.
House Republicans passed a bill that ties the student loan rate to the U.S. Treasury borrowing cost, plus two-and-a-half percent.
Many Democrats think the bill will fail in the long-term.
"What they've done over there is worse than doing nothing at all, " said Senate Majority Leader Harry Reid.
Democratic Senator Joe Manchin, working with Republicans, has proposed a similar plan, with one key difference; it won't use the savings to pay down the nation's debt.
The White House says it doesn't favor one proposal over the other, but says Congress needs to come up with a fix sooner rather than later.
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