Senators ready to restore lower college loan rates

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.

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.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s