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 Music

Rob Zombie starts crowd-funding campaign for killer clowns

Fresh
robzombie

The rocker/filmmaker wants fans to help him make another horror flick.

in Music, Viral Videos

WATCH: Bret Michaels covers ‘Endless Love,’ serenades van

Fresh
bret

The Poison frontman remakes the Lionel Richie classic, while rocking out at Nissan's car testing facility.

in Entertainment

‘Sharknado 2′ sparks feeding frenzy on Twitter, sets record

sharknado

Flying sharks chomping through NYC drew a record audience for Syfy network and became the most tweeted-about TV movie in history.

in Trending, Viral Videos

TODAY’S MUST SEE: Dog brakes

dog

Stella the yellow lab wants to keep playing fetch but her hind legs have other plans!

in Entertainment

REVIEW: ‘Get On Up’ won’t let James Brown fans down

This image released by Universal Pictures shows Chadwick Boseman, right, and Dan Aykroyd in a scene from "Get On Up."

It ain't braggin' if you back it up, and James Brown, warts and all, was one of the most important musical and cultural figures of the 20th century.