Senate Democrats are teeing up a battle with House Republicans over student loan rates but their efforts are being undercut by divisions within their own caucus.

The same political play worked well for the Democrats last year, when they forced Republicans to back down on the issue as the campaign season heated up.

Last summer, they were unified in the run-up to the election. Now they must contend both with the defection of party colleagues who cut a side deal with the GOP and with a proposal floated by President Obama that mirrors the policy Republicans favor.

Democratic senators are planning media appearances and a coordinated social media campaign with outside liberal groups over the July 4th recess to pressure Republicans on student loan rates. Those rates are set to double on Monday, from 3.4 percent to 6.8 percent.

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The Democrats in the Senate have scheduled a vote on July 10 on legislation that would freeze the lower rate for subsidized Stafford for one year and pay for it by raising taxes on certain inherited IRA and 401(k) retirement accounts.

Sen. Kay Hagan Kay Ruthven HaganThe Hill's Campaign Report: Democratic Unity Taskforce unveils party platform recommendations Democrats awash with cash in battle for Senate The Hill's Campaign Report: Trump's job approval erodes among groups that powered his 2016 victory MORE (N.C.), one of the Senate’s most vulnerable Democrats, is leading the messaging campaign.

On Thursday, she called the 3.4 percent rate freeze “critical for so many students and so many families in North Carolina and around the country”.

Hagan and 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.) are sponsors of the legislation.

But their strategy is undermined somewhat by three members of the conference who have cut a side deal to peg student interest rates to the fluctuating rate of 10-year Treasury notes.

Sen. 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.), one of the signatories to that bipartisan deal, suggested last week that his Democratic colleagues are being unreasonable.

“I hope that certain people start looking at truly compromising and working at something that fixes it,” Manchin said, when asked about opposition among Democratic colleagues to his proposal.

He said he could attract more Democratic supporters “if people are sincere about fixing things”.

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.) and Sen. 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 (Maine), an independent who caucuses with Democrats, have also signed onto the deal with Republican Sens. 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 (N.C.), 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 (Okla.) and 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 (Tenn.).

The bipartisan group’s plan would set the rate for subsidized and unsubsidized Stafford loans at the 10-year Treasury rate plus 1.85 percent. Graduate Stafford loans would be set at 3.4 percent above the 10-year Treasury rate. PLUS loans for parents paying for their children’s education would be set at 4.4 percent above the Treasury-note rate.

In aggregate, the proposal would save taxpayers $1 billion over 10 years.

Unlike a proposal passed by the House, the bipartisan Senate plan would lock in the interest rate over the life of a loan. It would cap interest rates for consolidated loans at 8.25 percent.

Manchin described it as “along the same lines” as a plan included in Obama’s budget.

This has opened the door for Republicans to slam Democratic leaders for being unwilling to compromise on the rates issue.

“Despite the introduction of a bipartisan solution, the Democrat Senate leadership continues to block student loan reform by attacking the president’s plan,” Senate Republican Leader Mitch McConnell Addison (Mitch) Mitchell McConnellSenate Republicans signal openness to working with Biden Hillicon Valley: DOJ indicts Chinese, Malaysian hackers accused of targeting over 100 organizations | GOP senators raise concerns over Oracle-TikTok deal | QAnon awareness jumps in new poll The Hill's Campaign Report: Biden asks if public can trust vaccine from Trump ahead of Election Day | Oklahoma health officials raised red flags before Trump rally MORE (Ky.) said in a statement.

Last year, faced with a unified Democratic front, Republicans agreed to freeze the rate for Stafford loans at 3.4 percent for one year, which expires Monday.

Obama spent weeks during the presidential campaign blasting Republicans for not agreeing to freeze student loan rates. This year, however, he has reached out to Republicans in search of a long-term compromise by proposing to set lending rates to the 10-year Treasury rates.

Obama has called for setting the rates for subsidized Stafford loans at 0.93 percent above the 10-year Treasury rate and the rate for unsubsidized loans at 2.93 percent above the bond rate. Like the bipartisan Senate plan, he has proposed locking in rates for the lifetime of loans.

Senior liberal Democrats have panned the bipartisan deal — and by implication, the president’s — by warning that Treasury rates could jump.

Indeed, financial markets were rocked in recent days by Federal Reserve Chairman Ben Bernanke’s signal that he would begin to taper the Fed’s bond buying program.

The yield on the 10-year Treasury note has jumped to 2.49 percent from just over 1.6 percent at the beginning of May.

Senior Democratic senators have ripped the Manchin-Burr plan for trying to “balance the budget on the backs of students”.

They warn that while rates for undergraduate Stafford loans would decline initially, they would jump to 7.1 percent by 2019.

“Every single loan program under the Manchin proposal will charge higher interest rates … than we have seen in the past,” said Sen. Tom Harkin Thomas (Tom) Richard HarkinThe Memo: Trump attacks on Harris risk backfiring Ernst challenges Greenfield to six debates in Iowa Senate race Biden unveils disability rights plan: 'Your voices must be heard' MORE (D-Iowa), chairman of the Senate Health, Education, Labor and Pension Committee. “We’ve heard from students who say, ‘No, this is not fair.’”

“Students across the country would rather have no deal than a bad deal,” said Reed, setting a tough tone for the debate.

Reid has also panned the Manchin-Burr proposal. He says it will not muster significant support within the Democratic caucus.