Senate Republicans killed a bill that would have prevented rates from rising on certain types of federally subsidized student loans.
President Obama has been campaigning for a couple of weeks in support of the legislation, which which failed by a 52-47 Party line vote to get the needed 60 votes in the Senate.
The argument was over how the $6 billion bill would be paid for, with Republicans wanting to take money out of a preventative health fund while Democrats sought to eliminate a tax break for small corporations.
But many Republicans don’t particularly want to extend the subsidy in the first place, feeling it is costly and incentivizes colleges to raise tuition rates.
Mitt Romney says he supports its extension, but Obama is likely to make it a key portion of his plank anyway, charging that Republicans care more about nasty, greedy corporations than poor defenseless students.