7 million college students will see their borrowing costs double next week - to 6.8 percent up from 3.4 percent -

7 million college students will see their borrowing costs double next week - to 6.8 percent up from 3.4 percent - 




Some 7 million college students will see their borrowing costs double next week after Republicans and Democrats paid little attention to the issue for 11 months, then spent the past month vainly squabbling over a solution.

Senate Democrats on Thursday rallied against a potential bipartisan compromise ahead of Monday’s deadline. Republicans ruled out a temporary one-year delay. The White House played both sides in the hopes of avoiding blame for the interest rate hike.

“Students across this country would rather have no deal than a bad deal,” said Sen. Jack Reed (D-R.I.).

If the political stalemate holds, during the upcoming school year more than 7 million undergraduates from lower- and middle-income households will take out subsidized Stafford loans that will carry interest rates of 6.8 percent, rather than 3.4 percent. Though the federal government pays the interest while borrowers remain enrolled in school, the increase will lead to an extra $1,000 owed over the typical 10- to 12-year life of the average borrower's loan.

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http://www.huffingtonpost.com/2013/06/27/senate-student-loan_n_3513073.html