AP sources: Tentative deal on student loans, roads
By ALAN FRAM and JOAN LOWY
Associated Press
WASHINGTON (AP) -- Congressional leaders have reached tentative deals that would prevent a doubling of student loan interest rates and revamp the nation's transportation programs, congressional officials said Wednesday. If completed, the compromises would resolve two vexing issues on which lawmakers face weekend deadlines for action.
House and Senate leaders have tentatively agreed to a one-year extension of today's 3.4 percent interest rates for subsidized Stafford loans, said a congressional Republican who spoke on condition of anonymity to reveal the issue's status. The measure - which would affect 7.4 million students projected to get new loans starting July 1 - is the same package that Senate Majority Leader Harry Reid, D-Nev., and Senate Minority Leader Mitch McConnell, R-Ky., said Tuesday they had crafted between themselves.
At the same time, congressional leaders have tentatively agreed on a two-year bill to overhaul federal highway programs, Senate aides said. The government's authority to spend money on highways, bridges and transit systems expires Saturday, as does its ability to levy gasoline and diesel taxes. They spoke on condition of anonymity because the deal wasn't final.