Senate deadlocks on student loans

The Senate deadlocked yesterday over federal student loan interest rates, with no consensus in sight on how to prevent rates on certain loans from doubling from 3.4 to 6.8% on July 1, the Washington Post has reported.

Unless Congress intervenes, interest rates for new subsidized Stafford student loans will double from 3.4 to 6.8 percent for about 7 million borrowers. These loans have favorable terms and are aimed at undergraduates who demonstrate financial need. Unlike unsubsidized loans, they do not accrue interest while students are in college.

Read the full article from the Washington Post and check out our recent posts on the various student loan proposals being considered by the government right now.