Student Loan Rates To Double

 

Student loan rates are doubling this week and will stay higher at least for a while.

The Associated Press reports the move comes after a compromise to keep student loan interest rates low proved unwinnable in the U.S. Senate before the July 1 deadline.

Sen. Tom Harkin, the chairman of the Senate education panel, said none of the proposals being circulating among lawmakers could win passage, and he urged lawmakers to extend the current rates for another year when they return from the July 4 recess.

Interest rates on new subsidized Stafford loans are set to go from 3.4 percent to 6.8 percent on Monday unless lawmakers take action.

Congress’ Joint Economic Committee estimates the increase will cost the average student $2,600.