December 7, 2001

Lenders and Student Groups Finally Agree on a Plan to Change Interest Rate on Loans

By STEPHEN BURD

After months of negotiations, advocates for students and lenders have finally agreed on a plan to avert an impending crisis in the guaranteed-student-loan program, and the two sides are hopeful that Congress will approve the proposal before it adjourns later this month.

At issue is a change in the formula used to calculate the interest rate students pay on their loans, a shift that is set to take place on July 1, 2003.

Lenders have been desperate to get Congress to block the

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