Tennessee’s Republican Senators are voicing frustration with a failed Democratic effort to temporarily lower student loans rates.
Because Congress hasn’t yet passed a student loan bill, interest rates doubled to 6.8% on July 1st. A group of Democrats tried to buy more time by restoring the previous, 3.4% rate for a year, but couldn’t get enough votes.
Tennessee’s Lamar Alexander called the attempt a bad idea, while Bob Corker denounced it as blatant political maneuvering.
“I mean, why would you do a one-year patch when there’s agreement about a permanent solution, it’s just silly.”
That agreement is a plan put forward by a bipartisan group, including Alexander. Roughly speaking, it would use the fluctuating 10-year Treasury Note to set student loan rates.
But while some Democrats are on board, others say the proposal could lead to sky-high interest rates.