Student loan Senate deal hopes fade on news of cost
- A potential Senate compromise on federal student loan interest rates appeared to be falling apart Thursday afternoon after a Congressional Budget Office analysis revealed that the plan would cost $22 billion over 10 years.
- The compromise, reached Wednesday night, would have tied the interest rate on federal student loans to the 10-year Treasury yield, but depended largely on its neutrality toward the federal budget deficit.
- Negotiators are expected to rework the plan during a Friday meeting.
From the article:
... The interest rate on subsidized Stafford loans rose to 6.8 percent on July 1, after the U.S. Senate reached an impasse over plans to avert the doubling. In the days since, Democrats and Republicans have been scrambling to reverse the rate increase, while blaming one another for the stalemate. ...
- The Chronicle of Higher Education Read More
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