US Senate passes student loan deal

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The United States Senate passed a bipartisan agreement Wednesday on student loan rates, nearly a month after the July 1 deadline.

Student interest rates for subsidized loans hiked from 3.4 percent to 6.8 percent, after the July deadline because of the struggle for a Senate agreement.

The legislation now puts undergraduate Stafford loan rates at 3.86 percent, graduate Stafford loans at 5.4 percent as well as parent and graduate student PLUS loans at 6.4 percent. According to ABC, this will apply retroactively to loans issued after the deadline.

Politico reported these new rates would come with interest rates cap, allowing rate to increase without exceeding a set limit of 8.5 percent for undergraduates, 9.5 percent for graduates and 10.5 for PLUS loans.

It came to a 81-18 vote, with Democrats split on the bill.

Follow Christine Ayala on Twitter @christine_ayala.