Sunday, July 1, 2012

Congress Extends Lower Student Loan Interest Rate

Posted By on Sun, Jul 1, 2012 at 10:05 AM

On June 29, Congress voted to extend a program that keeps interest rates on students loans low as graduates struggle to find jobs in a sluggish economy.

College students carrying student-loan debt in Idaho and across the country will continue to enjoy a 3.4 percent interest rate on some federal loans. Congress passed the measure two days before the rate would have doubled to 6.8 percent.

Subsidized federal Stafford loans offer no interest payments throughout a student's college career and for a six-month period after graduation while interest on unsubsidized Stafford loans accrues throughout.

According to Bloomberg, the rate increase would have affected more than 7.4 million students, accounting for more than $1,000 in debt each year.

July 1, 2013, now marks the next date to reassess the interest rate, which would double should Congress choose not to pass an extension in the future.

BW's Harrison Berry is collecting stories of student-loan debt in Idaho for an Email your story to to contribute.

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