The Senate on Wednesday failed to advance a bill backed by Democratic leaders that would keep student loan interest rates at 3.4 percent for another year.

In a 51-49 vote, the Senate fell short of the 60 votes necessary to break a filibuster and proceed with the bill.

Two senators that caucus with Democrats voted against the bill — Sens. Joe Manchin Joseph (Joe) ManchinSenate leaders quash talk of rank-and-file COVID-19 deal OVERNIGHT ENERGY: House Democrats tee up vote on climate-focused energy bill next week | EPA reappoints controversial leader to air quality advisory committee | Coronavirus creates delay in Pentagon research for alternative to 'forever chemicals' Senate Democrats demand White House fire controversial head of public lands agency MORE (D-W.Va.) and Angus King Angus KingShakespeare Theatre Company goes virtual for 'Will on the Hill...or Won't They?' On The Trail: How Nancy Pelosi could improbably become president Angus King: Ending election security briefings 'looks like a pre-cover-up' MORE (I-Maine). Both are sponsoring separate legislation backed by many Republicans that would peg student loan interest rates to the 10-year Treasury rate.

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A third senator who backs the Manchin-King approach, Sen. Tom Carper Thomas (Tom) Richard CarperDemocrat asks for probe of EPA's use of politically appointed lawyers Overnight Energy: Study links coronavirus mortality to air pollution exposure | Low-income, minority households pay more for utilities: report OVERNIGHT ENERGY: Democrats push resolution to battle climate change, sluggish economy and racial injustice | Senators reach compromise on greenhouse gas amendment stalling energy bill | Trump courts Florida voters with offshore drilling moratorium MORE (D-Del.), voted with the rest of his party on Wednesday.

Senate Majority Leader Harry Reid (D-Nev.) voted no as a procedural move so that he could bring the bill to the floor again at a later date.

Interest rates rose to 6.8 percent on July 1 after Congress failed to take action.

The latest developments leave it unclear whether lawmakers can reach a deal to lower the rates.

The bill rejected on Wednesday would have extended the 3.4 percent rate for need-based loans for one year. Its cost was offset by ending a tax break on tax-deferred retirement accounts. Sen. Jack Reed John (Jack) Francis ReedWhen 'Buy American' and common sense collide Hillicon Valley: Russia 'amplifying' concerns around mail-in voting to undermine election | Facebook and Twitter take steps to limit Trump remarks on voting | Facebook to block political ads ahead of election Top Democrats press Trump to sanction Russian individuals over 2020 election interference efforts MORE (D-R.I.), the bill's sponsor, said that would generate around $4 billion.

The House has approved legislation that is similar to the bipartisan bill backed by Manchin and King, and lower-chamber Republicans in recent days have raised pressure on the Senate to take action.

The bipartisan bill would require all newly issued student loans be set to the U.S. Treasury 10-year borrowing rate plus 1.85 percent for undergraduate loans. The cap on interest rates for consolidated loans would be 8.25 percent.

Besides Manchin, King and Carper, Sens. Lamar Alexander Andrew (Lamar) Lamar AlexanderTrump health officials grilled over reports of politics in COVID-19 response Now is the time to renew our focus on students and their futures CDC says asymptomatic people don't need testing, draws criticism from experts MORE (R-Tenn.), Richard Burr Richard Mauze BurrRep. Mark Walker says he's been contacted about Liberty University vacancy Overnight Defense: Trump rejects major cut to military health care | Senate report says Trump campaign's Russia contacts posed 'grave' threat Senate report describes closer ties between 2016 Trump campaign, Russia MORE (R-N.C.) and Tom Coburn Thomas (Tom) Allen CoburnCOVID response shows a way forward on private gun sale checks Inspector general independence must be a bipartisan priority in 2020 Congress must protect federal watchdogs MORE (R-Okla.) are sponsors of that legislation.

Democrats say that bill would be worse than doing nothing because there is no direct cap to loan interest rates.

“If you can explain to me why these proposals that the Republican’s have are better than just having the rates double, please explain that to me,” Reid said Tuesday. “I think we should support a plan that would be better for students not worse for students.”

Sen. Elizabeth Warren Elizabeth WarrenNo new taxes for the ultra rich — fix bad tax policy instead Democrats back away from quick reversal of Trump tax cuts It's time for newspapers to stop endorsing presidential candidates MORE (D-Mass.) said the differences between the two bills came down the a principle of whether the government should be “profiting off the backs of students.”

“Right now, the new loans are scheduled to produce $184 billion in profits for the U.S. government over the next 10 years,” Warren said Tuesday evening. “The Republicans have put forward a plan, and they’ve said in this plan that they want to be budget neutral so it produces $184 billion in profits for the United States government. … It’s not a fix — it’s just a different way to make $184 billion in profits off the backs of students.”

Burr said Warren’s characterization was “disingenuous.”

Reid said lawmakers are working on a possible compromise that could be brought to the floor later this month.