Senate's Student Loan Plan Cuts Rates—for Now
Undergrads would be able to borrow at 3.85% interest this fall
By Matt Cantor, Newser User
Posted Jul 18, 2013 6:37 AM CDT
Updated Jul 18, 2013 7:49 AM CDT
Senators appear to have agreed on a student loan plan.   (Shutterstock)

(Newser) – A Senate deal is set to lower interest rates on student loans for the next two academic years—but rates could climb after 2015, the AP reports after speaking to aides. Still, in the deal—set for a vote as soon as today—Democrats ensured that undergraduates would never face rates higher than 8.25%, while grad students won't see rates higher than 9.5%, and parents won't have to shell out more than 10.5%. Rates for several types of loans would be tied to 10-year Treasury notes, CNN adds; a House bill offers a similar measure.

On July 1, rates for new unsubsidized Stafford loans jumped from 3.4% to 6.8%, the AP notes. This autumn, thanks to the deal, undergraduates would be able to borrow at 3.85% rates; graduates, 5.4%; and parents, 6.4%. A strengthening economy will see the rates climb. The deal is reportedly supported by Sen. Tom Harkin, whose backing likely means wider support among Democrats, CNN notes. The White House also supports the plan, according to a Senate Democratic aide.

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Showing 3 of 13 comments
Jul 18, 2013 11:37 PM CDT
Oh, there are those words again. The market, capitalism, supply and demand. Mumbo jumbo for dumbos. My oldest grandson has a four year full university scholarship that covers everything. But we have two more boys to go, so I encourage their parents to leave this country for the sake of their futures. They have family in Canada, South America and Europe. They can receive government funded university education in any of those places, public healthcare, and live better lives. As far as the next generation goes, this place is for losers. Billionaire criminals are fleecing this place to the bone. When they're done, the entire place will look like Detroit. Yeah, rah, rah capitalism. What a bunch of morons.
Jul 18, 2013 8:58 PM CDT
Seriously, how about if everyone just pay for it's own education. Take away the scholarships because that is what drove prices up. 33% of students doesn't pay a penny for education, 33% percent pays half and 34% has to provide for the two above. Is it fair, is it how capitalism works? Now wonder that instead paying $400 for three credits one must pay $1,200. To Hell with this fairness, I want capitalism back along with free competition.
Jul 18, 2013 8:52 PM CDT
When you figure out how much you paid for that student loan, you will know that with High School degree and good mind you would make same money in the end.