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

Extension Sought for Medical Marijuana Program

Fresh
marijuana

Medical marijuana has gotten off to a slow start in Illinois, so one state lawmaker wants to push back the finish line.

in Local

SEIU Rallies to Find Funding for Child Care Program

Fresh
state_capitol_1

The program's money is about to run out, part of the current fiscal year's budget problems.

in Local

U of I Asks Court to Dismiss Professor’s Lawsuit

university illinois

University lawyers say Steven Salaita had no "binding contract''.

in Local

U.S. Court Declines to Decide Illinois Benefits Issue

gavel2

A federal appeals court in Chicago has declined to resolve a contentious issue over whether Illinois' constitution strictly bars the reduction of retiree benefits.

in Local

Deere & Co. Prepares for Largest Revenue Drop Ever

john-deere-logo

Sales are forecast to fall 17 percent this fiscal year from 2014.