Posted: May 7, 2012 6:26 AM
Updated: May 7, 2012 6:26 AM
Source: Associated Press
WASHINGTON - The Senate plans to vote Tuesday on whether to start debate on a Democratic plan to keep some college loan interest rates from doubling on July 1.
The $6 billion needed would come from Social Security and Medicare payroll taxes from high-earning owners of some privately held corporations.
Republicans have their own bill, which also would freeze interest rates on subsidized loans at 3.4 percent for another year. But the money would come from eliminating a preventive health program in President Barack Obama's health care overhaul.
Neither proposal is expected to win the votes needed to pass. But both sides expect a bipartisan deal before July 1 because no one wants student loan interest rates to balloon before the presidential election in November.