News Summary: Senators to lower college loan rates

News Summary: Senate reaches deal to restore lower college loan rates for most students

Associated Press

NEW DEAL: A bipartisan compromise on student loans would undo a rate hike that took hold for subsidized Stafford loans on July 1. If Congress did nothing, the hike would cost most students an extra $2,600.

TERMS SET: Undergraduates this fall could borrow at a 3.9 percent interest rate, graduate students at 5.4 percent, and parents at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money.

LIMITS INCLUDED: Democrats won a protection that rates would never climb higher than 8.25 percent for undergraduates, 9.6 percent for graduate students and 10.5 percent for parents.

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