Politics & Government
Student Loan Rates to Double
The Senate couldn't agree on a way to keep student loan rates down Wednesday, meaning potentially doubled rates when students return to campus in the fall.
The Senate failed July 8 to lower certain student loan rates. It could mean a bill higher by about $2,600 over the life of an average student's loan, according to Congress’ Joint Economic Committee.
Senate Democrats’ proposal would have left the rates on government-subsidized Stafford student loans at 3.4 percent for another year, giving legislators time to come up with a long-term fix for the system. The rate has remained at 3.4 percent for the last two years.
Sen. Tim Kaine (D-Va.) released a statement shortly after today's decision, expressing his displeasure.
“I am extremely disappointed the proposal to keep subsidized Stafford student loan rates at 3.4% was stopped by a filibuster,” he said. “I have long supported measures, including the Student Loan Affordability Act, that would have prevented the doubling of these rates.”
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According to Kaine, more than 179,000 students in the Commonwealth will be affected by the increased rates, and their doubling could severely affect their finances.
“Saddling students with high levels of debt hurts students, communities, and our economy,” he said.
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The increased rates won’t affect students right away, since new loan documents are usually signed when students return to school in the fall.
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