News Summary: Student loan plans fail in Senate

News Summary: Senate defeats Democratic, Republican student loan plans

Associated Press

OPEN YOUR WALLETS: Interest rates on new student loans are likely headed higher after senators failed to advance proposals to keep them from doubling July 1.

MANUFACTURED CRISIS: Dueling measures in the Senate would have kept interest rates on some student loans from moving to 6.8 percent from 3.4 percent. Separate Republican and Democratic proposals failed to in procedural votes.

THE TWO SIDES: Democrats in the Senate wanted a two-year extension of current rates while lawmakers write a comprehensive overhaul of student loans. Republicans wanted to link interest rates to the 10-year Treasury note.

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