Senators reach tentative agreement on student loans

http://blogs.marketwatch.com/capitolreport/2013/07/18/senators-reach-tentative-agreement-on-student-loans/?mod=MW_home_latest_news


Senators have struck a tentative student-loan deal that would reverse a big jump in interest rates now set to hit university students returning to school this fall.
Reports say that the Senate plan — while still being finalized — would let undergraduates borrow for the coming school year at a rate of 3.86%. For future years, interest rates would climb or drop with the yield on the 10-year 10_YEAR +0.20% Treasury note – but with a cap at 8.25%. Senate Democrats had sought such a cap.
Rates for new subsidized Stafford loans doubled on July 1 to 6.8% from 3.4% because Congress couldn’t reach a deal before taking its Independence Day break. Since returning, lawmakers have been working on a fix.