Student Loan Interest Rates Set to Double by Monday

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Student loan interest rates look like they will spike from 3.4 percent to 6.8 percent on Monday as Congress has not come to an agreement on the topic.

Though they have had an entire year to work on a proposal for it, solutions from all sides have not gained enough traction in the Senate. And as immigration is taking more of the focus this week, student loan interest rates are on the back burner.

Democrats want the loan rates to be locked at 3.4 recent for another year while Republicans and Democrats come to an official agreement. They have even suggested covering the cost by closing tax loopholes used by oil companies.

Republicans are meanwhile blaming the other side for putting off the matter.

On Wednesday, a bipartisan coalition of senators revealed a solution called the Student Loan Certainty Act.

In it, the undergraduate Stafford loans would be linked to Treasury rates plus an additional 1.85 percent. Graduate Stafford loans would also be tied to Treasury rates with an additional 3.4 percent added on. These rates would be locked to the loan until it is paid off.

"This bipartisan agreement not only makes sure student rates will not double by July 1, but this is a long-term fix that will lower rates for all students and will save students $30 billion over the next three years, making sure anyone who wants an education, can afford one," Sen. Joe Manchin, D-W.Va., said. 

"This deal shows the American people that bipartisanship and common sense are alive in Washington. We can find common ground to help our students and ensure the next generations of Americans have the same wonderful educational opportunities that we have always had."

The plan was criticized by Democrats, however.

"There is no deal on student loans that can pass the Senate because Republicans continue to insist that we reduce the deficit on the backs of students and middle-class families, instead of closing tax loopholes for the wealthiest Americans and big corporations," Adam Jentleson, spokesman for Harry Reid, D-Nev. said. 

"Democrats continue to work in good faith to reach a compromise but Republicans refuse to give on this critical point."

Instead of making any real progress, both political sides continue to attack each other with accusations about how they are approaching the matter. 

Democrats have taken to Twitter to explain that Republicans are protecting the wealthy at the cost of students, while Republicans have fired back with Facebook ads targeting Democrats. 

Sources: US News, RT