Senators Closer to Student Loan Deal

(CNN) — A deal on student loan interest rates could be inching closer to reality, as a bipartisan group of senators hammered out a plan Thursday.

Their plan would tie interest rates on government Stafford loans to the rates on the 10-year U.S. Treasury note. Students would pay the rate on that note–about 2.6 percent now–and then a certain percentage on top of that, depending on if they’re undergraduate or graduate students.

It’s similar to a plan the House passed in May.

The big difference is the Senate plan would put a cap on how high the rates could go: 8.25 percent for undergraduate and 9.25 percent for graduate students.

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