A formal announcement, and possibly even a vote, is scheduled for today in the U.S. Senate as lawmakers announced July 17 that they had reached a bipartisan deal to restore lower student loan interest rates. The Associated Press reports that the breakthrough came one day after lawmakers met with President Barack Obama on the issue at the White House.
The deal would offer students lower interest rates through the 2015 academic year. After that, rates could reach as high as 8.25 percent for undergraduate students, 9.5 percent for graduate students and 10.5 percent for parents under the agreement.
“It would save students in 11 million families billions of dollars,” Tennessee Republican Sen. Lamar Alexander told Politico of the deal. “We’d like to be able to do this together and we hope that we can come to a decision right away because families need to make their plans.”
Interest rates on federal student loans doubled to 6.8 percent July 1 following a Capitol Hill stalemate.