Republican Sen. Richard Burr has put together a bipartisan deal on student loan rates, but Democratic Senate Leader Harry Reid said it will not pass, The Hill is reporting.
Burr said that under the emerging deal undergraduates would play a loan rate equal to 1.85 percent above the 1.85 percent above the 10-year Treasury rate. Graduate students would pay 3.4 percent above the 10-year Treasury rate, whaler parents of students who take out PLUS loans would pay 4.4 percent above the 4.4 percent above the treasury rate.
Burr negotiated the deal with Senators Lamar Alexander, a Republican from Tennessee, Tom Coburn, a Republican from Oklahoma, Joe Manchin a Democrat from West Virginia, and Angus King, an independent from Maine.
A bill will be introduced Friday.
But a spokesman for Reid said the deal would not be supported by the broader Democratic conference.
"I am pleased we were able to find a permanent, market-based solution to addressing our nation's student loan problem,'' Burr said in a statement. "This agreement lowers rates for 100 percent of America's students and families and gives them the certainty they need to plan for college and beyond ' all while reducing the deficit.''
"Our compromise satisfies the framework requested by President Obama and Secretary Duncan, has the support of members of both parties in the United States Senate, and is a no-brainer for the American people,'' Burr said. "Let's do the work our constituents sent us here to do; put the politics aside and pass this bill.