On July 1, need-based student loan rates doubled from 3.4 percent to 6.8 percent. Senate Majority Leader Harry ReidHarry ReidBill O'Reilly: Politics helped kill Kate Steinle, Zarate just pulled the trigger Tax reform is nightmare Déjà vu for Puerto Rico Ex-Obama and Reid staffers: McConnell would pretend to be busy to avoid meeting with Obama MORE (D-Nev.) said that the Senate could vote on a bipartisan deal that would lower rates now, but some Democrats have complained that rates could rise above 6.8 percent for future students. 

ADVERTISEMENT
“Future students will have to pay even higher rates so that students now can pay a little less,” Warren said. “I don’t believe in pitting our kids against each other.”

A Democratic plan from Sen. Jack ReedJohn (Jack) Raymond ReedSenate panel moves forward with bill to roll back Dodd-Frank Army leader on waiver report: 'There's been no change in standards' 15 Dems urge FEC to adopt new rules for online political ads MORE (D-R.I.) failed last month that would have extended the 3.4 percent rate for one year.

The bipartisan deal would be a permanent solution and base loan rates on the 10-year Treasury note, plus 2.05 percent to cover administrative costs. The bill also caps undergraduate loan rates at 8.25 percent. The House passed a similar bill last month.

Warren and Reed have argued that the bipartisan bill maintains profit levels on student loans. They believe the government should offset loan spending by raising taxes on corporation of the wealthy.

“There is no compromise in this bill,” Warren said. “With student loan rates now at 6.8 percent the government will make $140 billion in profits. Under the new proposal the government will make the same $140 billion ... that all comes directly off the backs of students. I want to see these profits go down.”

Sen. Dick DurbinRichard (Dick) Joseph DurbinDemocrats turn on Al Franken Minnesota's largest newspaper calls on Franken to resign Democratic senator predicts Franken will resign Thursday MORE (D-Ill.), a co-sponsor of the bipartisan deal, defended the bill because he said there weren’t the votes in the House and Senate to pass a more progressive bill.

“We don’t have the votes to achieve it,” Durbin said. “So the question is will we do nothing?”

Reed said he would introduce an amendment to the bipartisan bill to change the loan cap from 8.25 percent to 6.8 percent.

Sen. Bernie SandersBernard (Bernie) SandersSchumer: Franken should resign Franken resignation could upend Minnesota races Avalanche of Democratic senators say Franken should resign MORE (I-Vt.), who also doesn’t support the bipartisan plan, said he too would offer an amendment that would sunset the loan bill after two years. Congressional Budget Office estimates show that under the bipartisan bill, loan rates would remain below 6 percent for the first two years.