Monday, July 02, 2012

Student Loan Deal Keeps Low Interest Rate Intact

Student Loan Deal Keeps Low Interest Rate Intact: Ending a months-long stalemate that threatened to drive up costs for students, President Obama and Congress agreed to extend for one year the current low 3.4 percent interest rate on subsidized student loans for college.

Without action by July 1, rates would have doubled to 6.8 percent for an estimated 7 million students, adding about $1,000 to the cost of a typical loan.

“Congress listened to students and their families and delivered a bill that stops student loan interest rates from doubling,” said Rich Williams, higher education advocate for US PIRG.

He said the agreement “is another important step in getting rising student loan debt under control.”