GOP blocks Senate debate on Dem student loan bill

WASHINGTON — Republicans have blocked the Senate from debating a Democratic bill keeping interest rates on college loans from doubling this summer for 7.4 million students.

Republicans say they support heading off higher rates on subsidized Stafford loans. They oppose how Democrats would pay for the measure — raising payroll taxes on high-earning stockholders of some privately owned corporations.

The vote was largely symbolic because the measure had no chance of approval in the Republican-run House. It was also designed with November’s elections in mind because it could produce fodder for Democratic commercials against GOP senators.

Republicans want a vote on their own bill freezing interest rates and paid for by abolishing a health care fund.

Tuesday’s vote was 52-45 to debate the measure — eight votes short of the 60 needed.

With both parties focused on this November’s presidential and congressional elections, it is no coincidence they each have chosen to pay for their bill with a favorite target that they believe speaks to their core voters: Democrats going after higher revenues from the rich, Republicans trying to punch a hole in Obama’s health care overhaul.

Behind the scenes, aides from both parties have been trying to find a consensus way to pay for the bill. With neither party eager to appear to be causing college students to bear higher costs, conventional wisdom is that eventually a compromise will be struck, but first the political posturing will have to play out.

Subsidized Stafford loans are for low- and middle-income students. The higher rates, should they occur, would only affect students taking out new loans starting July 1.

The Education Department estimates 7.4 million students will borrow $31.6 billion in such loans in the year beginning July 1, averaging $4,226 for each student.

These loans generally are paid off over a decade or more after graduation. Allowing interest rates to double would cost the typical student about $1,000 over the life of the loan, the administration says.