The Herald Bulletin

Morning Update

Local Education

July 10, 2013

Student loan interest rates still set to rise

WASHINGTON — Republicans and a few Democrats blocked a proposal that would have restored 3.4 percent interest rates on subsidized Stafford loans for one more year Wednesday.

Lawmakers are still racing against the clock to come up with a plan to avoid 6.8 percent interest rates on new loans taken out beginning in the fall.

Without congressional action in the coming weeks, the increase could mean an extra $2,600 for the average student receiving a four-year degree, according to Congress' Joint Economic Committee.

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Local Education
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