Senate leaders announced yesterday they reached a deal to freeze student loan rates for one year, according to a report from the Washington Post. The deal must be finalized in Congress by July 1 to prevent rates on government-subsizied Stafford loans from doubling from 3.4 to 6.8 percent.

Senate majority leader Harry Reid said he believes the proposal will be acceptable to the House, though details of how the plan will work it’s way through Congress are not clear at this time, the report said.

The $6 billion cost of the one-year extension will be covered by increased premiums for federal pension insurance, formerly a point of contention between the two parties.

A statement issued through email by the Jay Carney, the United States Press Secretary, expressed support for the Senate’s decision.

“We’re pleased that the Senate has reached a deal to keep rates low and continue offering hard-working students a fair shot at an affordable education,” the statement read. “Higher education has never been more important to getting a good job.”

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What does this mean for you?

Interest on loans that are federally subsidized would remain at 3.4 percent for another year, rather than jumping to 6.8 percent. More than 7 million students would be impacted by this plan.

Information courtesy of the Washington Post.

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For the past few months, President Barack Obama has been traveling the country speaking to universities and other groups, encouraging Congress to act swiftly. Supporters used the hashtag #dontdoublemyrate to spread their concerns and comments about student loans.

Earlier this semester, Obama spoke at the University of North Carolina at Chapel Hill about the importance of bipartisanship in addressing the issue.

“I don’t want this to be a country where a shrinking number of Americans are doing really, really well and a growing number of Americans are struggling to get by,” Obama said in Chapel Hill, to an audience of thousands of students and other. “That’s not my idea for America. I don’t want that future for you, I don’t want that future for my daughters. I want this, for everyone, to be a country where everybody gets a fair shot.”

[box]Photo gallery: President Obama's speech at UNC Chapel Hill[/box]

More recently, on June 21, Obama addressed the subject of college affordability in a speech from the East Room.

“This is all about the economy,” Obama said. “This is all about whether or not we are going to have the best-trained, best-educated workforce in the world. That improves our economy.

“And higher education cannot be a luxury reserved just for a privileged few. It’s an economic necessity for every family, and every family should be able to afford it.”

Stay with The Pendulum for updates as they become available.