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 Local

Republicans React to Free Community College Plan

college

Agreed: College must be more affordable

in Local

Durbin: Enough with the “Repeals”

durbin

Does not expect cooperation from Republicans

in Local

Springfield Mayoral Candidates Spar Ahead of February Primary

vote election

The crowded mayor field will be trimmed after February's primary

in Local

Rauner Rails Against State’s Finances

state_capitol_4

Also wants to overhaul tax system

in Local

Pot Decisions Now Up to Rauner

pot

New governor says he is not in favor of the program during campaign