Senate leaders say they have student loan deal

By: Associated Press Email
By: Associated Press Email

Senate leaders of both parties say they've reached a deal to prevent interest rates on millions of student loans from doubling beginning on Sunday. But House Speaker John Boehner has yet to decide whether the pact will be agreeable to the Republican-run House.

Senate Majority Leader Harry Reid of Nevada and Senate Republican leader Mitch McConnell of Kentucky told reporters Tuesday that they have worked out an agreement between themselves.

Boehner spokesman Michael Steel says the Ohio Republican will examine the pact.

Senate aides say the agreement would keep interest rates for subsidized Stafford loans at 3.4 percent for another year. The $6 billion cost would be financed by making it more expensive for companies to get federal insurance for their pensions and reducing federal subsidies for Stafford loans.

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