Senate GOP Members Defeat Student Loan Bill, Rates Could Double On July 1

A bill placed in front of the Senate that would keep student loan interest rates from doubling while offering other helpful concessions to post-graduated students who are suffering in a down economy failed to pass on Tuesday with a vote of 52-45.

The bill required 60 votes to move to a debate on the legislation however Democrats and Republicans could not reach a deal that would prevent a GOP filibuster.

If Congress can’t get its act together by July 1 student loan rates will double from 3.4 percent to 6.8 percent, spelling more trouble for an industry that is already buckling under its own weight.

The US House of Representatives has already approved a piece of legislation that will stop student loan interest rates from doubling, although President Obama has threatened to veto that plan because Republicans want to cut preventative care services under the healthcare law to pay for their option.

The failed bill written by Senate Democrats sought a $6 billion extension of low interest loans by closing certain tax loopholes used by shareholders of S-corporations, loopholes the GOP wanted to remain open.

In the meantime both sides have opened fire on one another with Speaker John Boehner (R-Ohio) accusing the President of using student loans to campaign, noting that the Republicans have passed a bill while the Democratic led Senate has not.

Firing back on Tuesday was Senate Majority Leader Harry Reid (D-Nev.) who offered champion the Republicans’ alternative to the student loan legislation but only if they promised not to filibuster the Democrats’ bill.

After Republican lawmakers blocked the bill in the Senate Harry Reid proclaimed:

“Unfortunately, it appears that Republicans appear more interested in obstruction than progress.”

In the meantime both the Republicans and the Democrats once again continue to allow their ideologies to get in the way of progress that would benefit members of both parties and their constituents.