Student Loan Deal Passes Senate Inclusive of Grad Loans
Posted: Thu Jul 25, 2013 4:26 pm
http://money.cnn.com/2013/07/24/news/ec ... hpt=hp_bn3
This fall, undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury, also on June 1.
However, if interest rates were to spike, the bill makes provisions to cap the rates. Loans for undergraduates will be capped at 8.25% and for graduates at 9.5%.
The bill won support from Senate Republicans. However, left-leaning Democrats and student groups opposed the bill for hiking rates in coming years.
"The truth of the matter is the bill on the floor would be a disaster for the young people of our country who are looking to go to college," said Sen. Bernie Sanders, a Vermont Independent who opposed the bill. "This makes a bad situation worse."
Under the deal, high school students, like Dakota Friend, 16, could be paying more for student loans when she attends college. However, it will benefit her sister, Briana Mullen, who is currently a rising junior at University of California, Berkeley.
If interest rates spike then grad loans will be capped at 9.5%
This fall, undergraduate students will pay an overall interest rate of 3.86% on their loans. It is comprised of the yield on the 10-year Treasury note on June 1, plus an additional 2.05%. Graduate students will have to pay 5.41% on loans this fall, or 3.6% over the 10-year Treasury, also on June 1.
However, if interest rates were to spike, the bill makes provisions to cap the rates. Loans for undergraduates will be capped at 8.25% and for graduates at 9.5%.
The bill won support from Senate Republicans. However, left-leaning Democrats and student groups opposed the bill for hiking rates in coming years.
"The truth of the matter is the bill on the floor would be a disaster for the young people of our country who are looking to go to college," said Sen. Bernie Sanders, a Vermont Independent who opposed the bill. "This makes a bad situation worse."
Under the deal, high school students, like Dakota Friend, 16, could be paying more for student loans when she attends college. However, it will benefit her sister, Briana Mullen, who is currently a rising junior at University of California, Berkeley.
If interest rates spike then grad loans will be capped at 9.5%