New Student Loan Deal on The Way
The United States Senate has formed a bipartisan group which may have come up with a student loan deal that will pass both Senate and House.
Related: Quarter Life Crisis
The House and Senate have been at odds for weeks trying to work out an agreement that would lower the interest rates on student loans, but were unable to do so. In result the interest rates for federal student loans doubled earlier this month. The new deal would keep interest rates on student loans below the current 6.8%. But it would now be tied to the financial markets. Under the deal;
all undergraduates this fall would borrow at 3.85 percent interest rates. Graduate students would have access to loans at 5.4 percent and parents would be able to borrow at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money.
There was a cap put to protect the undergraduate loans interest rate from ever going beyond 8.6 percent. Lawmakers are confident that this bill will pass with no hiccups.
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