Rates on Government-Backed Student Loans Double

Market rates, anybody?

Students preparing to take subsidized government loans will see their interest rates double to 6.8% from current levels, starting Monday, July 1.

But hope isn't lost yet. Lawmakers are working hard behind the scenes trying to strike a deal to save the 7 million college students who are slated to take the subsidized federal Stafford loans this year.

Senate Democratic leaders are throwing their weight behind a bill that would extend the 3.4% rates for another year, just as Congress did last year.

House Republicans have said they'd prefer a longer term solution, like the one they passed back in April to keep rates low for now but rise along with market rates in the future.

Comments

[Tina3223]

The question of student debt becomes more popular day by day. It's a pity that it is on the second place after home mortgages. All this illustrates us that today's economic system isn't stable. Students ask lending agencies for help and don't guarantee that they will be able to pay off their debts. Internet sources give full information about how to find money fast and easy and provide students with all needed money. But the situation with debts is quite stressful. Student's diploma cannot guarantee that he would find in future an appropriate job to pay off his debt. So, where is the way out of this situation and who would help? I cannot even imagine.