Student Loan Rate Increase: Congress Fails to Make Compromise On Loan Reform

Trending In Our News Feeds Congress fails to prevent increase in student loan rates. Interest rates on federally subsidized Stafford student loans doubled overnight from 3.4% to 6.8% when Congress failed to cut a deal to extend the lower rate. The Joint Economic Committee estimates the new rate will cost the average student $2,600. However, Congress can still pass a bill to reverse the damage. Democrats say they will consider a Senate vote to reverse the increase on July 10, but would prefer passing comprehensive loan reform. “We need a one-year patch to keep interest rates from doubling on student loans. That buys us the time,” Senator Elizabeth Warren (D-Mass.) said.

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