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Senate Student-Loan Plan Falls Apart Over High Cost, Aides Say

A tentative deal among senators to move student-loan interest rates to a market-based variable rate instead of fixed percentages fell apart after the plan was estimated to cost $22 billion over 10 years, Senate aides said.

The Congressional Budget Office’s cost estimate forced members of the bipartisan group to redraft their plan to tie the rates for Stafford and PLUS loans to changes in the yield on 10-year Treasury notes, said Republican and Democratic aides who spoke on condition of anonymity to discuss the talks.