TribLIVE

| USWorld

 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Senate deal would cut student interest rates

Email Newsletters

Click here to sign up for one of our email newsletters.

Daily Photo Galleries

'American Coyotes' Series

Traveling by Jeep, boat and foot, Tribune-Review investigative reporter Carl Prine and photojournalist Justin Merriman covered nearly 2,000 miles over two months along the border with Mexico to report on coyotes — the human traffickers who bring illegal immigrants into the United States. Most are Americans working for money and/or drugs. This series reports how their operations have a major impact on life for residents and the environment along the border — and beyond.

By The Associated Press
Wednesday, July 17, 2013, 9:24 p.m.
 

WASHINGTON — Heading off a costly rate increase for returning college students, a bipartisan group of senators reached a deal on Wednesday that would offer students better rates this fall but perhaps assign higher rates in coming years.

The deal would offer students lower interest rates through the 2015 academic year, but then rates were expected to climb above where they were when students left campus this spring. Undergraduates could face rates as high as 8.25 percent, while graduate students would see rates as high as 9.5 percent and parents' rates would top out at 10.5 percent.

The deal was described by Republican and Democratic aides who insisted on anonymity because they were not authorized to discuss the ongoing negotiations by name.

A vote on the agreement could be made as early as Thursday, although it could be pushed back to the middle of next week depending on the Senate calendar.

The bipartisan agreement is expected to be the final in a string of efforts that have emerged from near constant work to undo a rate hike that took hold for subsidized Stafford loans on July 1. Rates for new subsidized Stafford loans doubled from 3.4 percent to 6.8 percent, adding roughly $2,600 to students' education costs.

Lawmakers from both parties called the hike senseless but differed on how to restore the lower rates. Republicans have pushed for a link between interest rates and the financial markets. Obama included that link in his budget proposal, as did House Republicans. Democrats balked, saying it could produce government profits on the backs of borrowers if rates continued to climb.

Subscribe today! Click here for our subscription offers.

 

 


Show commenting policy

Most-Read Nation

  1. Obama to mandate steeper emissions cuts from power plants
  2. 2 women advance to final phase of Army Ranger training
  3. State Department accuses top Clinton aide of violations
  4. Body of Forest Service firefighter recovered amid Northern California blaze
  5. U.S., Hong Kong researchers develop computer model to examine spread of influenza
  6. Pressure mounts for Biden to join 2016 White House race
  7. ‘Fast, Furious’ pistol was sold to gunman in foiled Texas terrorist attack
  8. Food industry players fighting proposed dietary guidelines drop millions on lobbyists
  9. Marines finally ready to roll out controversial fighter jet
  10. Construction of giant bridges sparks curiosity, high demand for public tours
  11. 4 dead, 65 sickened in Bronx by Legionella