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

today in Trending, Viral Videos

TODAY’S MUST SEE: Fence FAIL

fence

A man who appears intoxicated tries his hardest to climb a fence, but it's not happening.

today in Music

Record Store Day full of reunited bands, special editions

recordstoreday

Record Store Day celebrates thousands of independent music shops around the world.

today in Entertainment

Today in entertainment history: April 18

roseanne

A look back at Hollywood history.