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

in Entertainment

Stars lose millions of followers in Instagram crackdown

Fresh
kim-kardashian2

Justin Bieber and Kim Kardashian are among the celebs who lost fake followers when the social media service purged fraudulent accounts.

in Music

Styx: Rock Hall hates ‘power rock’

dennisdeyong

The "Come Sail Away" hitmakers have been overlooked again, alongside peers like Journey and Foreigner.

in Music

Frank Sinatra app offers indepth look at singer’s life

franksinatra

The downloadable app comes as fans prepare to celebrate Ol' Blue Eyes' 100th birthday at the end of 2015.