News

Student loan rates double without Congress’ action

Student loan rates double without Congress’ action

WASHINGTON (AP) — Interest rates on some new federally backed loans for college students are now double what they were last week.

student-loan-chartSubsidized Stafford loan interest rates went to 6.8 percent on Monday because Congress didn’t strike a deal to keep them low. That translates to an extra $2,600 per student in costs. It affects roughly a quarter of all federal borrowers.

The effects aren’t immediate, though. That’s because most students sign their loan documents when they return to campus in the fall.

Lawmakers say they can return the interest rates to 3.4 percent when they return after the July 4 holiday.

The Republican-led House passed a bill before leaving town that linked student loan interest rates to the financial markets. The Democratic-led Senate, however, was unable to overcome a procedural hurdle.

Recent Headlines

16 minutes ago in Music

Housing complex named after Bon Jovi

Fresh
jbj

A housing complex in Pennsylvania now bears rocker Jon Bon Jovi's initials.

1 hour ago in Music

Justin Bieber angers Asian community with visit to Japan shrine

Fresh
Justin Bieber

The Beebs apologizes for a visit to a controversial Tokyo shrine honoring WWII war criminals.

today in Trending, Viral Videos

TODAY’S MUST SEE: Brian Williams raps ‘Gin & Juice’

birna

After he leaves the "NBC Nightly News," Brian Williams might have a future in music.