A student loan bill is not dead yet.
Senators worked into the night to try to forge a bipartisan agreement on student-loan interest rates. Even though a July 1 deadline came and went, Congress has insisted that it can still retroactively strike a deal and prevent student loan rates on subsidized Stafford loans to jump to 6.8%. This rate hike will effect about 7 million students and families. And it could cost students up to $4,500 over the life of their loans.
Here's how the Senate deal could get done. All federal student loan rates would be rewritten creating two classes of loans, one for undergrads and one for graduate students. All undergrad student loans would be set at the same rate on a yearly basis and capped at 8.25%. "I believe we're close to a solution that will drive down the rates substantially," said Sen. Angus King (I-Me.) who is part of the bipartisan group of senate negotiators.
"Today is a huge day for anyone who cares about students to actually contact their member of Congress," says Aaron Smith, executive director of the Young Invincibles. He tells The Daily Ticker that a deal will get done in the Senate, but says we need a more "comprehensive approach" to make college affordable. Smith sees college tuition rates rising 5-8% every year unless action is taken. Watch the video above to see what he thinks can be done.
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