Senators Compromise on Student Loan Rates

A bipartisan compromise on student loans promises better deals for students and parents over the next few years but could spell higher rates as the economy improves, the Memphis Daily News reports. Under the deal, undergraduates this fall could borrow at a 3.9 percent interest rate. Graduate students would have access to loans at 5.4 percent, and parents would be able to borrow at 6.4 percent. Those rates would climb as the economy improves and it becomes more expensive for the government to borrow money. Sen. Lamar Alexander, R-Tenn., said students will benefit: "For every one of them, the interest rates on their loans will be lower."