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

Ben U Student Airs Concerns Following Private Forum

Updated
school test

The questions surrounding Benedictine University's decision to cancel undergraduate programs at its Springfield campus continue.

in Local

Springfield Clinic’s “GIVE75″ Campaign Continues

sojourn

Springfield Clinic is celebrating its 75th birthday but the company is giving the presents instead of receiving

in Local

Bar Assoc. Offers Help Voting for Judges

gavel2

How do you know how to vote for judges? The Illinois State Bar Association has some help.

in Election 2014, Local

Rauners Say Bruce and Quinn Agree on Social Issues

Illinois Republican gubernatorial candidate businessman Bruce Rauner participates in a Republican gubernatorial candidate debate Tuesday, Feb. 18, 2014, in Springfield, Ill. The four Republican gubernatorial candidates said that they’ll be willing to work with unions if elected but differed on how to approach the relationship during a downstate debate that largely focused on pension reform, taxes and just briefly on personal issues that have dogged some of the candidates.

Speaking to a coalition of women supporting her husband’s campaign, Diana Rauner said Gov. Pat Quinn has tried to take the focus off jobs and the economy.