On July 1, interest rates on Stafford student loans doubled from 3.4 percent to 6.8 percent because Congress could not come to an agreement before the July 1 deadline.
According to a New York Times editorial, "This increase in costs comes at a time when college debt has already reached record levels, damaging the economy and hobbling young graduates. It also draws attention to the fact that the federal government is making quite a lot of money from the loan program. An analysis by the Congressional Budget Office estimated that the new, higher rate would earn the government about $184 billion over the next decade, after taking into account program costs, including potential defaults."
But Wednesday, by an 81-18 vote, the Senate approved a bill to tie federal college loan rates to financial markets and offer borrowers lower rates this fall, essentially rolling back the July 1 interest rate hike. The bill is expected to gain approval from both the GOP-controlled House and President Obama.
So how much do you know about the state of student loan debt in the U.S.?
- Mike Lee: Change is coming to Washington
- Jay Evensen: Cuba not likely to change...
- My view: Chaffetz named ‘politician of...
- Disputes over specialized license plates...
- Letter: Patriots or sheep?
- Greg Bell: Socialism vs. the safety net
- In our opinion: Water, a precious commodity
- Carmen Rasmusen Herbert: New Christmas...
- Charles Krauthammer: Democrats use... 78
- In our opinion: Police training should... 45
- Mike Lee: Change is coming to Washington 44
- Robert Bennett: More political... 36
- Susan Roylance: Definition of the... 34
- My view: Chaffetz named... 34
- Letter: Patriots or serfs? 33
- Jay Evensen: Cuba not likely to change... 31