Baucus Votes to Lower Student Loan Rates

Press Release

Montana's senior U.S. Senator Max Baucus voted for a bipartisan compromise to drop student loan interest rates for this upcoming academic year back down to 3.86 percent, after they rose to 6.8 percent on July 1st. Baucus said, that while the compromise was not perfect it was the best solution to ensure Montana students did not see their rates double this year.

"The number one priority is passing a solution that protects Montana students. This compromise is not perfect, but it makes sure our students won't see their rates double this year. Over the long-term, we need to continue working to make college affordable so all Montana students can get the education they need to land good-paying jobs in our state," Baucus said.

Baucus voted for an earlier proposal to keep the rates fixed at 3.4 percent, but it failed to get enough votes to pass. If Congress does not act, Montana students would be hit with the 6.8 percent rate when applying for new loans this fall.

Over the long-term, the compromise ties interest rates to the 10-year Treasury note and places caps to ensure Stafford Loan rates cannot spike beyond 8.25 percent.

Baucus said the compromise was the best option to protect students this year, but the issue should be revisited if rates rise dramatically again in the future.

The compromise is retroactive, meaning any summer students who took loans out when the rate was at 6.8 percent will see their rates drop back down to 3.86.

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