Senate reportedly reaches deal on student loans

Rates on certain loans doubled on July 1st due to congressional inaction


Philip Elliott
July 18, 2013 4:57PM (UTC)

WASHINGTON (AP) — Senators are ready to offer students a better deal on their loans this fall, but future classes could see higher interest rates.

The Senate could vote as early as Thursday on a bipartisan compromise that heads off a costly increase for returning students. The compromise would be a relative deal for students through the 2015 academic year, but then interest rates are expected to climb above where they were when students left campus this spring.

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Rates on some loans doubled on July 1 because Congress failed to reach an agreement.

Under the deal, rates would be linked to the financial markets. Rates would increase as the economy improves. Democrats demanded and won a cap on how high those rates could climb.


Philip Elliott

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