WASHINGTON College students taking out new loans for the fall term will see interest rates twice what they were in the spring unless Congress fulfills its pledge to restore lower rates when it returns after the July 4 holiday.
Subsidized Stafford loans, which account for roughly a quarter of all direct federal borrowing, went from 3.4 percent interest to 6.8 percent interest on Monday. Congress' Joint Economic Committee estimated the cost passed to students would be about $2,600.
Efforts to keep interest rates from doubling on new Stafford loans fell apart last week amid partisan wrangling in the Senate. Democratic senators and the White House both predicted that a deal would be reached in Congress to bring the rates down again before students return to campus.
But if an agreement remains elusive, students could find themselves saddled with higher interest rates this year than last.
Read more @: Student Loan Rates Double After Congressional Inaction
Yayy! My loans just doubled! If a deal isnt reached loans for many others and mine will also double! This is very upsetting, and hard to even believe!