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Senate reaches deal on lower student loan interest rates

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To reverse the July 1st jump on student loan interest rates, the Senate has passed a deal to lower rates on some federal student loans.

The plans brings interest rates down on subsidized Stafford loans to roughly 3.8-percent. On July 1, 2013 rates doubled to 6.8-percent.

The bill does allow rates to increase in coming years, capping at 8.25-percent for undergraduates and 9.5-percent for graduate students.

According to the Office of the Press Secretary, President Obama said he applauds the effort by Senators to lower student loan rates. He said he is urging the House to pass the bill.

“I hope both parties build on this progress by taking even more steps to bring down soaring costs and keep a good education – a cornerstone of what it means to be middle class – within reach for working families,” said President Obama.

The bill is expected to pass in the House of Representatives and become a law.