Student loan deal pales against other education cuts

Claudio Sanchez — Sun, 01 Jul 2012 08:35:34 +0000

It came down to the wire, but finally, Republicans and Democrats agreed on a deal that keeps the interest rate on government-backed student loans from doubling. It will save the average borrower about $1,000 a year, but the compromise is likely to cost students a lot more than that over the long term.

The agreement that lawmakers passed Friday will keep interest rates at 3.4 percent for another year.