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On July 1, rates for need-based student loans doubled from 3.4 percent to 6.8 percent. Senators are expected to debate two competing bills aimed at retroactively fixing the student loan hike this week.

Most Senate Democrats support S. 1238, but a bipartisan group introduced a plan similar to one passed by the House, which would make the interest rate equal to the 10-year Treasury note plus 1.85 percent. The House-passed bill set the rate at the 10-year note plus 2.5 percent. 

Both the House GOP bill and bipartisan Senate bill, S. 1241, capped maximum loan rates above 8 percent, leading some Democrats to say the bills are worse than doing nothing because rates could get higher than 6.8 percent. It is unclear if the Bipartisan Student Loan Certainty Act from Sens. Joe ManchinJoe ManchinProgressives rave over Harrison's start at DNC US, EU pledge to work together on climate amid reported dissension on coal Senate to hold hearing on DC statehood bill MORE (D-W.Va.), Richard BurrRichard Mauze BurrPast criticism of Trump becomes potent weapon in GOP primaries Trump endorsement shakes up GOP Senate primary in NC House Democrats to Schumer: Vote again on Jan. 6 probe MORE (R-N.C.), Tom CoburnThomas (Tom) Allen CoburnNSF funding choice: Move forward or fall behind DHS establishes domestic terror unit within its intelligence office Wasteful 'Endless Frontiers Act' won't counter China's rising influence MORE (R-Okla.), Lamar AlexanderLamar AlexanderAuthorities link ex-Tennessee governor to killing of Jimmy Hoffa associate The Republicans' deep dive into nativism Senate GOP faces retirement brain drain MORE (R-Tenn.), Angus KingAngus KingHillicon Valley: Big Tech critic Lina Khan named chair of the FTC | Lawmakers urge Biden to be tough on cyber during summit with Putin | TSA working on additional security regulations following Colonial Pipeline hack Senate Armed Services member: Administration should have 'hair on fire' over Afghan interpreters Senators introducing B bill to help narrow digital divide MORE (I-Maine) and Tom CarperThomas (Tom) Richard CarperThis week: Democrats face fractures in spending fight Progressives want to tighten screws beyond Manchin and Sinema Democrats wary of emerging bipartisan infrastructure deal MORE (D-Del.) will also get a procedural vote on Wednesday.

Democrats have pointed to Congressional Budget Office estimates that the federal student loan program has generated a $50 billion profit, saying the government shouldn’t profit off students and low-income families.

“Too many Michigan students and families are strapped with tens of thousands in student loan debt when they graduate,” Stabenow said. “We need to be making college more affordable, not raising rates so the government makes a profit off of students.”

Last month, the Senate attempted to pass similar legislation that would have extended the 3.4 percent rate for two years — paid for by ending tax breaks for corporations and the wealthy — but there wasn’t enough support to overcome the Republican filibuster requiring 60-votes to advance the bill.