WASHINGTON (AP) -- The Senate could vote as early as today on a compromise bill to keep interest rates from spiking on certain student loans.
The compromise could be a good deal for students through the 2015 academic year, but then interest rates on new loans are expected to climb as the economy improves and it becomes more expensive for the government to borrow money.
The breakthrough came Wednesday, one day after lawmakers huddled with President Barack Obama at the White House. Lawmakers are expected to vote as early as Thursday on the deal that would lower rates before students return to campus.
The deal would offer students lower interest rates through the 2015 academic year but then rates were expected to soar. Undergraduates could face rates as high as 8.25 percent, while graduate students would see rates as high as 9.5 percent and parents' rates would top out at 10.5 percent.
The deal is described by Republican and Democratic aides who insist on anonymity because they are not authorized to discuss the ongoing negotiations by name.
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