Federal Stafford Loan Rates to Double Beginning Today
As if it weren’t hard enough to pay for college nowadays, the federal government has decided to make it even MORE expensive by not coming to a conclusion on a bill that would keep Subsidized Stafford loan interest rates from doubling from the current 3.4% to 6.8%…a move that would essentially save students roughly $5,000 for a four year degree.
The interest rate hike stands to impact hundreds of thousands of students across the U.S. including right here in Victoria with UHV having a little over 4,000 students and Victoria College having around 4600 chances are more than a handful will feel the pain if Congress fails to act.
Not all is lost though. Although Congress just ended for their week long July 4th vacation, they have promised to take up the bill when they return next week and should they reach an agreement, it would be retroactive to July 1st meaning students won’t see an interest rate rise.
Should they not reach a deal, the new interest rates will affect only those students taking out NEW Subsidized Stafford Loans and those who have past loans they may still be paying off….you’re safe…..for now.