Student loan rates to double on Monday

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COLLEGE TUITION

By Perry Chiaramonte

Interest rates on student loans are set to double on Monday after lawmakers failed to find a bipartisan solution to keep the federally subsidized borrowing costs down.

The Senate adjourned Thursday night for the July 4 recess without approving a student loan rate package.

With the current, 3.4 percent interest rate on Stafford loans — the most popular funding for college students – set to expire on July 1, a host of 11th-hour fixes all failed to generate support from both sides of the aisle. Without new legislation — either to extend the cap, set a new one or find another way to peg the loans – the cap rises to 6.8 percent. Congress could always forge a solution in the following days, even lowering rates retroactively.

The higher rates would add about $3,000 to the total interest on a $23,000 student loan repaid over 10 years.

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Source: FOX NEWS

1 Comment

  • uhavenoclu

    Open your eyes people. Every budget cut involves education. College tuition has increased over the last few years. More schools are having students learn on the internet…bonjour !
    You see where your educatuon is going. ?

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