The agreement reached in the Senate on federal student-loan interest rates will not have much of an impact on overall demand for these loans, even though it has an immediate effect of alleviating financial pressure on borrowers, according to Fitch Ratings in a note released today.

On July 10, senators agreed to link rates on federal student loans to market rates, specifically the yield on the ten-year Treasury. The agreement also imposes a rate cap — 8.25% for undergraduates and 9.25% for graduate students.

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