For a few weeks this summer, the student loan rate shot up from 3.4 to 6.8 percent—potentially adding to what some call an already burdensome student debt crisis.
However, Congress reached a deal that would tie student loan rates to the 10-year U.S. Treasury bond.
The bill was passed by the Senate in July and the House this month. The bill now awaits the president’s signature.
For now, rates will go to 3.86 percent for undergraduate students paying for college on their own. Rates will be slightly higher for graduate students and parents who pay their children’s tuition.