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

Today in entertainment history: Oct. 24

jamesbrown

A look back on some of the Hollywood headlines that made history.

in Entertainment

‘Jersey Shore’ star heading to trial on tax evasion

sorrentino

Reality TV star Michael "The Situation" Sorrentino pleaded not guilty to federal tax fraud charges.

in Music, Weird

Bret Michaels doesn’t need your bank account info

bretmichaels

The Poison singer is warning fans about a bizarre new scam.