Thanks to Congress, Student Loan Rates Likely to Double

Thanks, guys. The Senate anticipates that it will miss the July 1 deadline for passing legislation to prevent student loan rates from doubling, but says it expects to pass a bipartisan proposal in July that would take effect retroactively.

Right now, student loan rates are at 3.4 percent.

The House has already passed a bill that GOP leaders say is based on an Obama administration proposal, and Senate Democrats should be able to use it as a starting point. The House bill would cause rates to rise to around five percent in a few years, with an 8.5 percent cap.

A bipartisan group of senators has been working with the White House on an alternative proposal they hope can pass the Senate. But because the Senate is pushing to finish work on the immigration bill by Friday, aides say they don't think the proposal will be passed this week.

The latest Senate bill does not have a cap on interest rates, but otherwise seems similar in format. Senators like Elizabeth Warren (D-MA) have urged legislation that would lower the interest rate on student loans far below the current 3.4 percent rate, and may oppose the current bi-partisan plan.