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

Candidate And Activist Forum Ahead


The South Dakota Democrat Party is hosting the Senator Tim Johnson Candidate and Activist Training Camp this weekend in Sioux Falls.

in Local

Pheasant Season Arrives


Resident Only pheasant hunting season beings this weekend in South Dakota, while the main season starts next Saturday.

in Local

Push On For Medicaid Expansion

Medical Stethoscope

A large working group appointed by South Dakota Governor Dennis Daugaard is looking at a plan that could expand Medicaid coverage.

in Local

Mumps Cases on the Rise at the University of Iowa

doctor office 102713

Cases of mumps are being seen at the University of Iowa.

in Local

Nuts to Bats

medical file

Bats are very active right now, and should be avoided.