A group of Senators have reached a bipartisan deal on student loan rates, CNN reports following confirmation from Senate aides.
Subsidized Stafford loan rates for economically disadvantaged students doubled on July 1, after Congress failed to reach an agreement to keep the rate at 3.4%. Under the new arrangement reached by Senators this morning, all undergraduates would be able to borrow at 3.85% while graduate students and parents would borrow at rates of 5.4% and 6.4% respectively.
Previously, non-subsidized Stafford loans for undergraduates and graduate students had rates of 6.8% and parents paid rates of 7.9%.
The new plan would also cap student loan rates at 8.25% for undergraduates, 9.5% for graduate students, and 10.5% for parents.
While it is still unclear when the Senate will vote on the deal, Senate Majority Leader Harry Reid said Thursday that the vote could come as soon as later that day, according to the AP.