Senate passes student loan rate deal

Students got some relief on interest rates for their college loans as the Senate passed a bill that would cap rates down the road at 8.25% and immediately lower the rate to 3.8% The Hill: President Obama's administration "strongly supports" the deal, and he is expected to sign the bill if it reaches his desk. On July 1, need-based student loan rates doubled from 3.4 percent to 6.8 percent. "The interest rate for undergraduate students goes down almost 3 percent from 6.8 percent for 3.8 percent," Sen. Dick Durbin (D-Ill.) said ahead of the vote. "As interest rates go up, so will student loan rates, but we put a cap on it. ... This is a better outcome." Several Democratic senators opposed the Senate bill, despite the fact that Senate Health, Education, Labor and Pensions Committee Chairman Tom Harkin (D-Iowa) supported it.  "Not only does this legislation raise long-term loan rates for students, it fails to close tax loopholes, and does not ask the wealthy to pay their...(Read Full Post)