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.
Tired of talking heads ignoring the issues your care about? Sign up for the Mic Check newsletter and get a daily dose of the news, hand picked for millennials.