Politics & Government
Will Student Loan Interest Rates Double?
The interest rate for Stafford loans could increase to 6.8 percent on July 1.
The interest rate on federally subsidized Stafford loans is scheduled to double on July 1 from 3.4 percent to 6.8 percent for any loans issued after July 1 unless Congress votes to push that date back.
About 7 million undergraduates would be affected, raising costs by an average of $1,000 each, the Huffington Post reports.
Why is this happening?
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According to the Huffington Post,
"Democrats in 2007 crafted the law to progressively lower the interest rate from 6.8 percent to the 3.4 percent rate – where it is this school year – and then return to the original 6.8 percent in 2012. Republican President George W. Bush signed the deal into law after it was approved by bipartisan but Democratic-heavy majorities in both chambers."
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St Davids resident George Badey, a candidate for Congress in Pennsylvania’s Seventh District, has come out as opposed to allowing the student loan interest rates to double this year.
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