Lenders Seek to Forestall Drop in Student-Loan Interest Rate

Democratic control of Senate emboldens advocates who say cut would benefit borrowers

Lobbyists for banks and other lenders are putting on a full-court press to persuade Congress to renew a multibillion-dollar subsidy that the lenders say they need to continue offering federal student loans.

While the lobbyists expect to prevail, they have been tripped up recently by some unforeseen circumstances.

The lenders achieved a major victory in May, when Republican leaders in the