TribLIVE

| USWorld


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

Senate deal would cut student interest rates

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.

 

 
 


Show commenting policy

Most-Read Nation

  1. Government survey: More teens trying out e-cigarettes than real thing
  2. New York farmers lament lost opportunity for natural gas riches with fracking ban
  3. Florida officer slain; 1 charged
  4. Coal mines near record low in worker deaths
  5. Georgia prosecutor Yates tapped for No. 2 post in Justice Department
  6. Police: NYC cop killer invited people to watch shooting
  7. New York City subways slowly upgrading from 1930s-era technology
  8. Arizona immigrants OK’d to apply for driver’s licenses
  9. Veteran NBC newsman Brokaw says his cancer is in remission
  10. Nativity scene placed by Satanic display at Michigan Capitol
  11. IBM’s Watson supercomputing system to be applied to PTSD
Subscribe today! Click here for our subscription offers.