Created on Wednesday, 10 July 2013 Written by THE ASSOCIATED PRESS
FAILED AGAIN: A proposal from Senate Democratic leaders that would have held interest rates on subsidized Stafford loans at 3.4 percent for another year failed to pass a procedural hurdle.
COUNTER PROPOSAL: Republicans — and a few Democrats — urged colleagues to consider a plan that would link interest rates to the financial markets and reduce Congress' role in setting students' borrowing rates. Similar legislation has passed the House.
RATE HIKE: Failure to come up with a new plan means students may borrow money for fall courses at a rate leaders in both parties called unacceptable. Absent congressional action, the increase could add $2,600 in borrowing costs, on average, for a student returning to campus this fall.