Student Loans

Congress Looks for Solution to Student Loan Rate Jump

Hike on July 1 doubled rate

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Congress returns to Washington this week groping for a way to retroactively fix a high-profile doubling of some federal student loan rates.

The rate for new subsidized loans shot up from 3.4 percent to 6.8 percent on July 1 after divisions among Senate Democrats made finding a solution untenable. Now with the bright lights of the immigration bill off the upper chamber, student loan rates take center stage.

In the days since the missed deadline, Washington's political apparatus has been a muddle of messaging. House Republicans are blasting Senate Democrats for not passing a bill as the lower chamber has done, albeit one that President Barack Obama has threatened to veto. And lawmakers from both parties are now using the #DontDoubleMyRate hashtag on Twitter, first popularized by Obama at the height of last year's presidential campaign.

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