Student Loan Interest Rate to Double As Deadline Passes Without Action

July 1, 2013

As Congress left Friday for a weeklong vacation for the Independence Day holiday, a July 1 deadline passed without congressional action on student loan interest rates. New subsidized federal Stafford loans issued after that date will incur a new rate of 6.8%, up from the current 3.4% students pay. Time still exists to fix the rate increase, however, as most students don't sign their loan paperwork until early August. Without legislation to reverse the increase, some 7 million students will see rates on their subsidized loans double at a time when student loan debt has reached more than $1 trillion and more and more economists are saying the massive student loan debt problem is becoming a drag on the economy.

Previous Article
19 Firefighters Killed Battling Arizona Wildfire
19 Firefighters Killed Battling Arizona Wildfire

Nineteen Arizona firefighters, 18 from an elite wildfire unit, were killed Sunday...

Next Article
Radio Host Rick Smith Goes on Labor History Tour Across America
Radio Host Rick Smith Goes on Labor History Tour Across America

Progressive radio host Rick Smith, a member of the Communications Workers of America...