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FOREST CITY, IA — Students heading to college this fall are getting some good news from Washington.
On Wednesday, the U.S Senate approved a deal that ensures lower interest rates on loans for students.
Undergraduates taking out government loans will get an interest rate of 3.86 percent.
It links the student loans to the market interest rates.
The U.S House is expected to follow and it seems the president will sign the bill.
It’s a better deal for students than the six point eight percent rate that kicked in on July first.
“This year’s rate will stay fixed for the life of the loan,” Waldorf College Director of Financial Aid Duane Polsdofer said. “Next year’s rate they get, say as a freshman to sophomore level could be higher than 3.86%, if that’s the rate they pass.”
This changed would not apply to loans that students get from private lenders, it only impacts Stafford Loans.