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How many more years do you have to go? essay my aim life become engineer The legislation ties interest rates to the financial market, which means rates for new loan applicants will likely increase as the economy improves. Under the original House bill, interest rates could change throughout the life of the loan. The bipartisan deal locks in the interest rates for the life of each loan and offers slightly lower rate caps – undergraduate loan interest rates can never surpass 8.25 percent, while graduate loans are capped at 9.5 percent and PLUS loans are capped at 10.5 percent.