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 National

Making headlines this week

surf

A look at the week's biggest newsmakers and the stories you won't soon forget.

in Local

Northampton BID Trial Coming to a Close

gavel

Closing arguments are expected today in a civil trial regarding the Northampton Business Improvement District.

in Local

Holyoke to release records

alex morse alt

The Secretary of the Commonwealth has ordered the city of Holyoke to release public records to "MassLive and the Springfield Republican."

in Local

Dog Bites Kids At Amherst School

dog tag

A rocky start in Amherst for the first day of school.

in Local

Man Busted For Lewd UMass Incidents

handcuffs

A Montague man has been charged in relation to a series of lewd incidents at UMass Amherst.