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Friday, July 12, 2013

Senate Reaches Tentative Deal On Student Loan Interest Rates

One day after failing to move forward on a one-year extension of low interest rates on federal Stafford student loans, the U.S. Senate has reportedly reached a tentative agreement that tie interest rates to the 10-year Treasury bond, thus resulting in a moderate increase in interest rates for students taking out their first loan this fall.
On July 1, interest rates for subsidized Stafford loans reverted from 3.4% to 6.8%. Given the desire to appease young voters (and their parents) and to not add considerably to the existing $1 trillion mountain of student loan debt in the U.S., lawmakers have been feeling the pressure to figure out a sensible long-term solution.

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