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 Local

Lesbian Couple Attacked at Six Flags

amusement park

Police say two women attacked a lesbian couple from Rhode Island whom they saw kissing at Six Flags New England

in Local

Man Pulls Gun on Relative in Hadley

handcuff no hands

A Pittsfield man is under arrest after Hadley police say he pulled a gun on a relative Sunday night

in Local

Berkshire Gas Buys Stake In Western Mass Pipeline

pipeline

UIL Holding Company has announced that it is buying two-point-five percent of the Tennessee Gas Pipeline

in Local

Longmeadow Residents Raise Money For Dead Construction Worker’s Family

police lights

Longmeadow residents have launched a fundraising effort to benefit the family of a construction worker killed on the job late last week

in Local

West Nile Virus Arrives In Massachusetts, But Not In The West

mosquito

A number of mosquitoes in the eastern part of the state has tested positive for West Nile, but not west of Worcester