Senate Approves Student Loan Bill

A Senate bill passed Wednesday would link interest rates on federal student loans to the financial markets, providing lower interest rates right away but higher ones if the economy improves and markets  rise. Undergraduates this fall would borrow at a 3.9 percent interest rate, graduate students at 5.4 percent and parents at 6.4 percent. The rates would be locked in for that year’s loan, but would recalibrate each year. Liberal members of the Democratic caucus were vocal in their opposition to the potentially shifting rates included in the Senate measure, which passed with support from both parties, 81-18. The Tennessean has the story.