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U.S. Senate Strikes Deal On Student Loans

After weeks of tough negotiations, it appears a bipartisan group of senators have reached a deal to restore lower interest rate on student borrowers.
After weeks of tough negotiations, it appears a bipartisan group of senators have reached a deal to restore lower interest rates on student borrowers.

Senate aides tell CBS News the new deal would tie federally subsidized student loans to the rate of the 10-year treasury note. Undergraduate students will pay an additional 2.05 percent, which will be capped at 8.25 percent. Graduate students can tack on 3.6 percent maxing out at 9.5 percent. Parents borrowing for their students will pay an additional 4.6 percent, but no more than 10.5 percent. President Obama has reportedly signed off on the compromise.

"We'll wait to see what's produced before we judge it. But obviously the President is very concerned about this issue," White House Press Secretary Jay Carney said.

The new bill could be introduced as early as Thursday.

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