The United States Senate failed to lower the student loan interest rate on federal loans on July 10.

On July 1, the student loan interest rate doubled overnight for college students who plan to take out loans this fall.

On July 10, the Senate failed to pass the Democratic proposal that would have kept the 3.4 percent interest rate for one more year, buying legislature more time to come up with a long-term solution.

Senate Democrats pushed for a one-year solution that would lower the rate until June 30, 2014, the same thing done last year. There are several proposals floating around the Senate to try and reverse what happened.

The Republican (and a few Democrats) proposal would prevent loan interest rates from doubling and tie future rate increases to treasury bills. While both parties have different solutions, the general agreement is to benefit students.

“It’s hard to understand why the Senate Democrats sought to keep interest rates where they are right now for one year, only to have the Congress have to revisit it, when there are bipartisan, bicameral plans for a long-term solution that are very similar to the President’s proposal,” Sen. Chuck Grassley said, in a press release on July 10.

“Both parties agree on the need for a comprehensive overhaul to make our financial aid system more effective, affordable, and sustainable,” Sen. Tom Harkin said, in a press release on June 28th.

After not reaching a solution by July 1, the Senate recessed for the July 4 holiday with the anticipation of reaching an agreement by July 10. After failing to pass the bill that was voted on Wednesday, the reality of students having to pay the 6.8 percent race is creeping in.

The issue of the student loan interest rate is back to negotiations yet again, while legislators try to reach an agreement before going to recess in August. Come August, students will have their rate locked on their student loan interest, whatever that might be.

Subsidized Stafford federal loan interest rates rose from 3.4 percent to 6.8 percent. These loans are for undergraduates who have financial need. Interest does not accumulate on these loans until the student is no longer in college, which makes them the most favorable federal loan for students.

If any bill is passed to lower the rate, the damage already done will be reversed; if not, student loan interest rates will double for students.

Congress’s Joint Economic Committee estimated the cost to students would be approximately $2,600.

The Senate failed to pass two bills that would have prevented increases in federal student loan rates in June.

Iowa State Government of the Student Body President Spencer Hughes sent a letter to send to Iowa senators and congressmen in June urging them to agree on a solution. In June, Hughes goal was to urge legislators to come up with a long-term solution. Since then, the goals have changed.

“Right now, we just want to make sure the rate doesn’t double,” Hughes said. “Ideally we would have a permanent solution, but right now we want whatever it takes to prevent the rate from doubling.”

The doubling of the student loan interest rate is expected to impact 7 million students who are expected to take out loans in the fall. When they leave school, they could receive a loan bill that’s almost $25 higher per month with the higher interest rate.

Roberta Johnson, Director of Financial Aid at Iowa State University, does not expect it to dramatically impact enrollment.

Total student loan debt in the U.S. currently over $1 trillion.