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

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. Clinton: Women ‘expect’ extremism from terrorists, not GOP candidates
  2. People who knew Virginia TV station shooter Flanagan recall his quick temper
  3. Obama opens climate change tour
  4. Compatibility of 1st-responder radios in doubt
  5. Obama marks Hurricane Katrina anniversary in New Orleans visit
  6. Biden, Warren meeting intensifies speculation on presidential candidacy
  7. Prosecutor in Casey Anthony trial says he didn’t use Ashley Madison site to cheat
  8. Virginia reporter, cameraman killed on air; gunman also dies
  9. Kraft Heinz recalls more than 2M pounds of turkey bacon
  10. US economy surged at 3.7 percent rate in April-June quarter
  11. Planned Parenthood alleges ‘smear’ campaign in letter to top lawmakers