John Lyon with our content partner, the Arkansas News Bureau, reports on the rising interest rates tied to certain college loans.
The interest rates for subsidized Stafford loans doubled on July 1st due to Congressional inaction.
From the Arkansas News Bureau:
The interest rate on subsidized Stafford loans, which account for about one-fourth of all federal student loans, doubled from 3.4 percent to 6.8 percent July 1 after a temporary freeze expired and Congress was unable to agree on extending the freeze or replacing it with a new agreement.
The House and Senate took a week-long recess for the July 4 holiday but have pledged to revisit the issue when they return this week.
“We’ve even had borrowers call and say, ‘OK, is this going to affect us?’” said Amy Neathery, student services coordinator for the Arkansas Student Loan Authority. “It’s only affecting new borrowers. Students that already have student loans, it will not affect them. And we don’t think that it will even affect the new borrowers; we think Congress will get this worked out.”
Read the full report at this link.