Coburn Joins Plan For Lower College Loan Rates

Jul 19, 2013

Credit U.S. Senate

U.S. Sen. Tom Coburn (R-Okla.) is part of a bipartisan group of eight senators announcing a deal that lets students avoid higher interest rates on federal loans.

The bipartisan group of senators on Thursday told reporters they've reached a compromise to lower the rates for students who borrow from the federal government.

The rates would be linked to financial markets, meaning interest rates would climb in coming years — but with a limit on how high the rates could be.

Coburn — a Republican — says the plan is a compromise that is a "win-win" for taxpayers and for students who were facing interest rates that doubled from 3.4 to 6.8 percent.

The House has already passed similar legislation and the differences could be resolved before students return to campus .