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

Luke Bryan joins the Chicago White Sox

Luke Bryan poses in the press room with the award for entertainer of the year at the 48th annual CMA Awards at the Bridgestone Arena on Wednesday, Nov. 5, 2014, in Nashville, Tenn.

Luke Bryan joined the Chicago White Sox for spring training in Arizona.

in Music

Jana Kramer defends home state after Madonna criticism

The Academy of Country Music hosts a free all star concert for fans as country music artist Jana Kramer performs at the ACM Fremont Street Experience on Saturday, March 31, 2012, in Las Vegas.

Jana Kramer steps up to defend Michigan after Madonna slammed their home state in interviews.

in Entertainment

‘Empire’ co-stars spark romance rumors

gracegealey

Are Trai Byers and Grace Gealey more than just coworkers?

in Entertainment

Idris Elba could be the next ‘Star Trek’ villain

idriselba

The in-demand actor is in talks to join the star-studded cast of the sci-fi franchise.

in Lifestyle

Eyes on the road: AAA says distracted driving worse than we thought

driving

You know how some people insist they can drive safely — even while they fiddle with their smartphones or other electronic devices? They can't.