Senate Republicans on Tuesday banded together to block progress on a bill that would maintain low interest rates on student loans, raising questions about the legislation's future.
By a vote of 52 to 45, the chamber fell eight votes short of the 60 votes necessary to end debate and move ahead with the bill. The party-line vote was largely expected, as the two parties had been at a standoff for several days.
Without congressional action, the 3.4 percent Stafford student loan rates will double to 6.8 percent on July 1st. Both sides agree on the need to keep the rates low but disagree on how to pay for the $5.9 billion cost.
The GOP wants to pay for the legislation by raiding a preventative care fund in the 2010 health care reform law - an idea President Obama has said he would veto -- while Democrats want to eliminate tax loopholes.
Senate Majority Leader Harry Reid, D-Nev., signaled that he intends to re-attempt passage of the bill later this week.
"Today, Republicans voted to hit students with an additional $1,000 in debt in order to protect wealthy tax dodgers," Reid said. "Republicans have paid lip service to the need to protect our students from this crushing debt burden, but their obstruction speaks louder than their words."
He added, "We have different approaches on how to pay for this bill, but Democrats' main goal is to move this bill forward. If Republicans want to have a vote on an amendment with their alternative way to pay for the proposal, they are more than welcome to have that vote if doing so would move this bill closer to the President's desk."
Currently, 7.4 million students have Stafford loans, and the interest rate increase would cost them each an extra $1,000 per year.
Senate Minority Leader Mitch McConnell, R-Ken., accused Democrats of participating in a "cynical election-year strategy" and suggested the party wasn't willing to compromise.
"Rather than working with Republicans to help young people in this country weather the effects of the 'Obama economy,' Democrats have sought to distract them from it," McConnell said.
The Republican-controlled House has already passed its version of the bill.
House Speaker John Boehner, R-Ohio, has called the preventative care fund in the 2010 health care law "a slush fund," while Democrats have pushed back against that criticism by accusing Republicans of sacrificing immunizations, mammograms and screenings.
Obama pushed the issue in multiple visits to college campuses recently and presumptive GOP presidential nominee Mitt Romney has said he agrees that the rates should be kept low.
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