Congress Votes to End Fixed Interest for Student Loans

July 31, 2013
Bloomberg 
student loan news

The Republican-led House on Wednesday voted 392-31 to approve legislation that would peg interest rates on government-backed student loans to a market-based rate, ensuring that nearly 9 million undergraduates will pay 3.86 percent interest on their next loan. The bill is now cleared for approval by President Barack Obama, who called for linking interest rates on Stafford and PLUS loans to the government's borrowing costs in his budget proposal last year. The new rates will be pegged to the yield on the 10-year Treasury note and will be retroactive to July 1 -- the day that the interest rate for subsidized Stafford loans doubled from 3.4 percent to 6.8 percent, matching the rate for unsubsidized loans.
Web Link







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`