The House and Senate are poised to approve a compromise today that would keep student loan rates from rising. Members of Rhode Island’s congressional delegation tell RIPR they expect the measure to pass both the House and Senate.
The deal stops interest rates on subsidized Stafford loans from doubling. The current rate of 3.4 percent will increase to 6.8 percent on Sunday if the measure does not go through.
Under the plan, the cost of extending the lower rate — some $6 billion — will be covered by an increase in federal pension insurance premiums. Senate leaders brokered the bi-partisan compromise at the last minute, after bickering over how to pay for the plan stopped an earlier effort.
The agreement will only halt the increase in student loan interest rates for another year, so the issue is likely to rear its head again in 2013.