Students could pay more for school loans

Congress to act soon

WASHINGTON - College students could end up paying an extra $5,000 on their new loans if Congress doesn't act soon.

The rate for subsidized Stafford Loans is set to increase from 3.4 percent to 6.4 percent on July 1.

This is just as millions of new college students start signing up for fall courses.

The difference between the two rates adds up to $6 billion.

It's a rate increase lawmakers dodged last year in the middle of the presidential campaign.

Student loan professionals said there's no urgency to block the increases and they are advising students to expect higher rates.

 

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