Senate procedural vote on student loans set for Wednesday
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The Senate is trying again on student loans.
Senate Majority Leader Harry Reid on Monday scheduled a procedural vote for Wednesday on a bill restoring the interest rate on subsidized Stafford loans to 3.4 percent for one year. Interest rates doubled to 6.8 percent last week because Congress didn't avert a rate hike built into the law.
House Republicans have passed a bill that would link rates to the financial markets and keep rates low in coming years. Rates would increase if the economy improves.
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Democrats opposed the GOP proposal but haven't found enough support to overcome Senate procedural hurdles. A previous attempt for a two-year extension failed to win enough support ahead of the July 1 deadline.
Congress can retroactively reduce interest rates. Few students sign loans before August.