Senate Reportedly Reaches Student Loan Rate Deal

Will roll back rates

Senators announced a bipartisan deal to charge flexible market-set interest rates for student loans, legislation that would end an impasse over how to extend a program that benefits 7 million low-income students.

Undergraduate students, whether they receive subsidized or unsubsidized Stafford loans, would pay 3.86 percent in the coming academic year, lawmakers told reporters. Future interest rates would be tied to annual fluctuations in the yield of the 10-year Treasury note, they said at a news conference.