Congress fails to reach deal on student loans, rates to double on Monday
Syracuse (WSYR-TV) – Lawmakers are pointing fingers at one another after Congress failed to reach a deal to keep the current interest rates on Stafford loans in place.
By departing Washington D.C. for the July 4 recess without a deal, Congress has allowed the interest rates to double from 3.4 percent to 6.8 percent.
Republicans and Democrats are blaming each other for the increase that goes into effect on Monday.
Democrats are skeptical of a House GOP bill that would adjust Stafford loans rates on a year-to-year basis dependent on the interest rate of a 10-year Treasury note, plus 2.5 percent.
In the meantime, lawmakers are trying to craft a short term solution.
A congressional report estimates that the interest rate increase would add $4,500 to the cost of a four-year degree.
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