Senate Majority Leader Harry Reid announced today that the Senate has reached a deal that will freeze interest rates on student loans for another year, although the details of the proposal have yet to be determined. “We basically have the student loan issue worked out,” Reid told reporters, according to the Washington Post. “The next question is, what do we put it on to make sure we can complete it?”
Questions remain over how Congress will pay for the $6 billion cost of the freeze.
Republicans have proposed paying for the extension by limiting the number of years part-time students could apply for subsidized loans, while Reid and the Democrats have suggested raising premiums for federal pension insurance.
President Obama heavily pressured Congress to reach a compromise over this issue, taking to press conferences and Twitter to voice his concern.
But Senate Minority Leader Mitch McConnell said today that Obama has been “largely uninvolved,” with the negotiations. He added that congressional leaders “have an understanding we think will be acceptable to the House,” according to the Post.
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