Senate rejects dueling plans on student loans


White House spokesman Jay Carney said in a written statement that GOP senators “still have not proven that they’re serious about resolving this problem” and accused them of protecting a tax loophole for the rich at the expense of higher costs for students.

“It’s time to get this done so hardworking students get a fair shot at an affordable education,” Carney said.

House Speaker John Boehner, R-Ohio, said his chamber already had approved a reasonable bill extending low interest rates for students and said the dispute could be settled quickly if Democrats would bargain.

“If the president and Senate Democratic leaders prefer a different approach, then the onus is on them to offer a solution that can pass both chambers,” he said in a written statement.

The Education Department expects 7.4 million undergraduates to borrow subsidized Stafford loans next year averaging $4,226. Doubled interest rates would add around $1,000 in costs, which for the typical loan taking 12 years to repay would mean less than $10 monthly in added expense.

The Federal Reserve Bank of New York estimates that at least 37 million Americans owe $870 billion for outstanding student loans, a figure that is growing and that exceeds the money owed for credit cards or auto loans. Four in 10 people under age 40 owe money for a college loan, the bank says.

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