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Student Loan Legislation Falls On Senate

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The Republican controlled House receives a lot of blame for stalling legislation, but in regards to the student loan rates, the chamber is moving efficiently, even if in a partisan manner. In May the lower chamber passed legislation to avoid student loan rates from doubling in July by a vote of 221 to 198.

The measure is controversial because it ties future loan rates to the market — an idea the majority of senators rejected last week. Rep. Morgan Griffith, R-Va. says it's now up to Senate Democrats to act.

"Senate has got to figure out what they want," he says. "We have sent a bill over. Look, that bill was not a perfect bill, but it's better then July 1 coming and having the rates double. But I think that there is room to maneuver if the Senate will tell us what it is that they want, and then I think that we could get a conference committee that could work something out."

If Congress doesn't act, those student loan rates will go up next month, leaving students facing a bleak job market with even more to get depressed about.

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