1. about Time

    Senators Reach Student Loan Deal

    Prospective students tour Georgetown University's campus in Washington, Wednesday, July 10, 2013. The defeat of a student loan bill in the Senate on Wednesday clears the way for fresh negotiations to restore lower rates, but lawmakers are racing the clock before millions of students return to campus next month to find borrowing terms twice as high as when school let out. (AP Photo/Jacquelyn Martin)

    Jacquelyn Martin/AP

    A bipartisan group of senators reached a deal Wednesday night to lower interest rates on federal loans for students, rates that doubled in July after Congress failed to take action when they expired. The new deal, revealed by a Democratic source, will return rates to their previous level until 2015, when they will begin to climb slightly. Rates are linked to financial markets, but the deal sets limits on how high they can go: undergraduates will never pay more than 8.25 percent, while graduate students have a ceiling of 9.5 percent and parents 10.5 percent. A vote on the deal could happen as early as Thursday, but may be delayed until next week.

    Read it at USA Today