WASHINGTON (CNNMoney) — An emerging bipartisan Senate deal to pare back rising student loan rates hit a stumbling block late Thursday, when initial cost estimates came in too high, according to multiple aides involved in the negotiations.
The tentative deal aims to help students with subsidized student loans who face a doubling of interest rates, to 6.8%. Lawmakers involved in the talks have said the package needs to be revenue neutral, but the nonpartisan Congressional Budget Office concluded the package would cost roughly $22 billion over the next 10 years, according to two sources.
Senators are waiting for a more complete CBO score to come in before talks continue, one of the aides said. Congressional staffers are planning to discuss the matter on Friday, while members hope to meet next week.
The tentative deal, which would have to pass a Senate vote, calls for interest rates on all government Stafford loans for students to be pegged to rates on the 10-year U.S. Treasury note, according to multiple sources close to the negotiations.
The group will need to pass the Senate. After that, it has to clear the GOP-controlled House.
