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, Sports

Carrie Underwood expecting her first child

Fresh
underwood

Singer Carrie Underwood and her pro hockey player husband Mike Fisher are expecting their first child.

in Trending, Viral Videos

TODAY’S MUST SEE: Boy’s hilarious reaction to baby news

Fresh
19-overlay3

This little boy is NOT excited about being a big brother again, but his reaction is priceless.

in Entertainment

Special showcases ‘Frozen’ behind the scenes

Fresh
Frozen Anna Olaf

Disney says tonight's special will include an "exciting announcement" about the next chapter of “Frozen."

in Entertainment

Today’s celebrity birthdays

sela

See which celebrities will be blowing out candles today.

in Entertainment

Jennifer Lawrence threatens action over nude photos

jlaw

Lawrence's representative has threatened to prosecute those behind a nude photo leak affecting dozens of A-list celebrities.