Due to the failure of Congress to act, student loan interest rates will double from 3.4 to 6.8 percent.
The increase will affect the interest rate on subsidized Stafford Loans, which are heavily used by undergraduates with financial need. More than 7 million college students will be affected as lawmakers work hard to reach a deal.
Time is ticking but lawmakers are striving to make leeway. Both parties know what these rates mean for the college students that desperately need a resolution.
“We need a one-year patch to keep interest rates from doubling on student loans,” said Sen. Elizabeth Warren, D-Mass. “That buys us the time.”