Last month, we witnessed senators decide on doubling interest rates on loans. This unfair increase could affect the lives of many American students and it is not a welcomed change. Perhaps there is some hope in this matter of doubling interest rates. Student borrowers will see interest rates reduced to levels near those that expired last month under a deal announced by lawmakers Thursday.
The legislation offered by a bipartisan group of senators largely follows the approach initially outlined by the Obama administration, which would base student loan rates on the 10-year Treasury note rate.
What can we expect under this deal?
Each loan would carry a fixed rate. “This is a long-term problem with a long-term fix,” said Sen.Joe Manchin III (D-W.Va.), who said students would save $27 billion in interest payments over the next four years under the plan.
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