A bipartisan Senate proposal to prevent a weekend student loan interest rate hike may be incorporated into a similar deal to avert the Saturday expiration of highway funding, Senate Minority Leader Mitch McConnell, R-Ky., confirmed on Tuesday.
"Those two could end up together; both need to be dealt with this week," McConnell said. Congressional leadership last week urged lawmakers to hammer out deals on both in a meeting on Thursday.
It's still unclear whether the highway proposal will be a full bill or a 10th extension of the last reauthorization bill, he said. A decision one way or the other is expected any day now.
Pay-fors for the rate hike proposal include Democratic proposals involving pensions, National Journal reported last week. The deal also includes a GOP proposal to cut off subsidized student loans after six years, saving about $1.2 billion a year. It has to be presented to the House, though McConnell is optimistic of its prospects.
Senate Majority Leader Harry "Reid and I have an understanding we think will be acceptable to the House," McConnell said on Tuesday afternoon.