Higher Student-Loan Interest Rates Could Have Political Costs

Susan Walsh, AP Images

Hopes for a bipartisan plan in the Senate foundered over worries that the proposal did not cap how high interest rates could rise in future years. Two Democratic senators, Jack Reed of Rhode Island (left) and Tom Harkin of Iowa, outlined their objections during a news conference on Thursday.
June 28, 2013 Premium content for subscribers. Subscribe Today

If interest rates on federally subsidized student loans double on Monday, as expected, the biggest loser may not be students. It could be Senate Democrats.

Sure, student borrowers will suffer if Congress lets the rates go up on new loans to...

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