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

2 mins ago in Local

Minnesota Governor Dayton See Fire Damage in Medelia

Fresh
dayton

Minnesota Governor Mark Dayton was in Madelia and got a first-hand-look at the damage from this week's fire that leveled several businesses along Main Street.

20 mins ago in Local

Standard Time Bill Moves in the SD Legislature

Fresh
alarm clock

A bill that would keep South Dakota on Standard time year-round has emerged in the legislature.

13 hours ago in Local

Yankton County Commission Debates Bridge Costs

Yankton County Commission 020516

Talk about replacing a small township bridge led to a wider discussion about the state of roads and possible repair in Yankton County by the County Commission.

14 hours ago in Local

“Intestinal Fortitude” May Help You Stay Healthy

medical file

The National Institute of Health is part of an ongoing study to better understand the makeup of “Gut Microbiomes.”

1 day ago in Local

MidAmerican Energy Expands Wind Power in Iowa

wind turbine

Iowa’s largest utility company has wrapped up work on its eighth and ninth wind farm projects, and is preparing to start work on its 10th wind project his spring.