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

Fire Damages Cottage Street Businesses in Easthampton


Chief David Mottor says fire broke out around 11:30 last night at the Platinum Pony bar and nightclub. He estimates damage at up to 90-thousand dollars.

in Local

White House Official Talks Addiction In Franklin County

opioid task force

Sponsored by the Opioid Task Force of Franklin County and the North Quabbin region, White House Drug Control Policy Office Deputy Director Mary Lou Learly was at Greenfield Community College to brief local officials on the administration's efforts to address prescription drug and heroin addiction.

in Local

Man Passing Counterfeit Bills in Whately

police lights

A phony one-hundred dollar bill was passed at the Whately Circle K store, the department reported on its Facebook page.

in Local

Amtrak Vermonter Derails in VT

train crossing

An Amtrak train bound for Western Massachusetts derailed in central Vermont Monday morning.

in Local

Bernie Sanders Rallies Springfield

Stephanie Slysz 
Bernie Sanders 
Springfield Mass Mutual Center

Over 6 thousand piled into Springfield's Mass Mutual Center to hear Democratic presidential candidate Bernie Sanders Saturday afternoon.