Washington, D.C. (CNN) — Thousands of college students are breathing a sigh of relief after a group of U.S. Senators agreed Wednesday night to restore interest rates on student loans. On July 1, rates for new subsidized Stafford Loans doubled, from 3.4 percent to 6.8 percent.
The deal would offer students lower interest rates through the 2015 academic year. Undergraduates this fall would borrow at 3.85 percent. Graduate students would have access to loans at 5.4 percent, and parents would be able to borrow at 6.4 percent.