WASHINGTON - A bipartisan group of senators is floating a proposal that would avoid the doubling of rates on student loans on July 1.
A document being circulated on Capitol Hill outlines a possible compromise that links student loan rates to the financial markets, a provision that was included in President Barack Obama's budget, as well as House and Senate Republicans' proposals.
The potential breakthrough, after months of stalemate, could help students dodge an extra $1,000 each year in costs for loans taken for classes this fall.
The bipartisan effort is led by Democratic Sen. Joe Manchin of West Virginia, Republican Sen. Tom Coburn of Oklahoma and Independent Sen. Angus King of Maine.
Party-line proposals on student loans failed in the Senate last week.