After an automatic doubling of student loan rates earlier in July, the Associated Press is now reporting that a bipartisan group of senators have reached a deal that “would offer students better rates this fall but perhaps assign higher rates in coming years.”
According to AP, the deal would offer students lower interest rates through the 2015 academic year. After that, however, rates would be expected to climb above where they are currently (6.8%).
A vote on the agreement could come sometime this week but it could be pushed back to the middle of next week depending on the Senate calendar, AP says.
The agreement comes after the student loan rate increase that took place on July 1. Rates doubled from 3.4% to 6.8%.
Under the deal, all undergraduates this fall would borrow at 3.85 percent interest rates. Graduate students would have access to loans at 5.4 percent and parents would be able to borrow at 6.4 percent, AP reports.
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