The United States Senate struck down a bill that would have expanded student loan refinancing on Wednesday.
The Student Emergency Loan Refinancing Bill failed to pass in a 56-38 vote, just short of the 60 votes needed to proceed to debate on the measure. The act would have allowed eligible borrowers including the 2013-2014 students to refinance their federal loans and refinance their private loans to the federal program.
The Obama Administration said it could have helped about 25 million borrowers save $2,000 each.
Senator Tammy Baldwin, a Democrat from Wisconsin, is a co-sponsor of the bill. She said the effects of the vote is holding an entire generation back.
"Not only does the staggering student debt load that's being shouldered across the country affect graduates as individuals, it also is affecting our economy as graduates make different job decisions than they might otherwise," she said.
Republicans said the bill would not have done anything to lower education costs or reduce borrowing. They accused Democrats of looking for a political issue and raising taxes. The bill would have been paid for with the what is called a Buffett Rule, which sets the minimum tax rates for people making over a million dollars.
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