Student loan compromise heads toward final vote
WASHINGTON - A deal that gives college students and their parents lower interest rates for loans is heading toward its final vote.
The House is expected Wednesday to take up a bipartisan compromise that links student loan interest rates to the financial markets.
Immediately, borrowers would see lower rates for classes this year than last, although the costs are expected to climb in coming years if the economy improves as expected.
Undergraduates this fall would borrow at a 3.9 percent interest rate. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent.
The rates would be locked in for that year's loan, but each year's loan could be more expensive than the last.