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Republicans block Senate proposal to keep student loan rates low

Student Loans

The political battle over President Obama’s plan to keep student loan interest rates from skyrocketing escalated as Senate Republicans blocked a Democratic proposal to tax wealthier earners to pay for it.

 

Revamping of Student Loans Approved by Senate

The measure ends billions of dollars in subsidies paid to commercial banks for making federally backed student loans in which they bore almost no risk, and expands direct federal loans to students instead.

 

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