Senate deal would cut student interest rates
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.
Show commenting policy
TribLive commenting policy
- Law enforcement, intelligence agencies want to ‘like’ you on social media
- Carjacked SUV hits crowd in Philadelphia, killing 3 siblings
- Senator Paul plots ways to draw minorities to GOP
- Data on impact of Colo. gun law, background checks questioned
- Glenn Beck takes on Common Core
- Annapolis Marine capain could be 1st to perform as part of Blue Angels team
- Perdue defeats Kingston in Ga. GOP Senate runoff
- Fire season expected to accelerate
- Tyrannosaurs ran in packs, fossils prove
- Pope to visit Philly next year
- Court upholds Fla.’s ‘Docs vs. Glocks’