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.

Latest Stories

in Sports

Grand jury to weigh case against Stewart in fatal crash

stewart

The case of a fatal dirt-track accident involving the three-time NASCAR champion will be heard by a grand jury.

in Entertainment

Eva Mendes and Ryan Gosling are parents

evamendes

The pair reportedly welcomed a baby girl last week.

in National

UPS hiring 95K temp workers for holiday season

ups

UPS is almost doubling the number of seasonal employees for this year's holiday shopping season.