Student Loan Hike Canceled, for Now
Congress prevented the doubling of interest rates on the loans of millions of current and former college students, but the deal lasts for just a year, and students are already anxiously wondering whether they’ll face the same financial threat next summer.
Congress prevented the doubling of interest rates on the loans of millions of current and former college students, but the deal lasts for just a year, and students are already anxiously wondering whether they’ll face the same financial threat next summer.
— Posted by Alexander Reed Kelly
WAIT BEFORE YOU GO...AP via The Washington Post:
Under the agreement, interest rates on new subsidized Stafford loans will remain at 3.4 percent. That’s estimated to save 7.4 million students about $1,000 each on the average loan, which is usually paid off over 10 or more years.
In the short run, that means students can breathe a sigh of relief this summer. A year from now, however, those rates are set to rise to 6.8 percent. That automatic increase was approved by Congress when lawmakers signed off on a series of scheduled rate reductions five years ago.
This year, the ground feels uncertain — facts are buried and those in power are working to keep them hidden. Now more than ever, independent journalism must go beneath the surface.
At Truthdig, we don’t just report what's happening — we investigate how and why. We follow the threads others leave behind and uncover the forces shaping our future.
Your tax-deductible donation fuels journalism that asks harder questions and digs where others won’t.
Don’t settle for surface-level coverage.
Unearth what matters. Help dig deeper.
Donate now.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.