07/18/2013
Undergraduates would pay the 10-year Treasury note rate, 2.49 percent on Wednesday, plus 2.05 percent, with a cap of 8.25 percent, to protect them from inflation. Graduate students would pay the 10-year Treasury rate plus 3.6 percent, with a cap of 9.5 percent.
Loans to parents of students would be given a rate of 4.6 percent plus the 10-year Treasury rate, with a cap of 10.5 percent.
A Senate aide said that the new proposal, which had been the subject of tense negotiations since the rates doubled on July 1, would include a cap on federal Stafford and PLUS loans and a relatively low interest rate.
