On July 1, 2013 interest rates on many new federal student loans doubled–endangering the dreams of many middle class families. If this sounds familiar, its because we went through this last summer. The Student Aid Alliance rallied thousands of students across the country and Twitter was ablaze with the hashtag #studentfiscalcliff — we were out to let lawmakers know not to balance the budget on the backs of our nation’s college students.
Congress kept interest rates low for one year–and now, that year has disappeared. Congress let the July 1 deadline pass without a deal, so come the fall, the interest rate on new subsidized student loans doubled from 3.4% to 6.8%. According to the White House, nearly seven million students will be affected by the rate increase, adding around $4.3 billion to the student debt burden next year.
Even though the deadline has passed, Congress is still negotiating. Stay in the loop here.
Pondering Pell (Inside Higher Education)
Student-Loan Changes, With Lower Rates for Now, Are Set to Be Signed Into Law (The Chronicle of Higher Education)
Congress Approves Student Loan Plan (Washington Post)
Obama Administration Urges Passage of Senate Student-Loan Compromise (Education Week)
Senate Reaches Deal to End Fight Over Student Loan Interest Rates (The New York Times)
Senate Crafts a Deal on Student-Loan Interest Rates (The Chronicle of Higher Education)
Senate Negotiates on Loans as Clock Ticks (National Journal)
Even With Student-Loan Compromise, Rates Will Likely Increase (National Journal)
Interest-Rate Jump Would Cost Average Borrowers $2,600 Over 10 Years (Chronicle of Higher Education)
Senators Scramble to Prevent Doubling of Student-Loan Rates (National Journal)
Kline Calls for Compromise on Student Loan Rates (Education & the Workforce Committee)
Arne Duncan Bullish on Student Loan Deal (Politico.com)
Everything You Need to Know About the Student Loan Rate Hike (Washington Post)
Arne Duncan Signals Worry Over Student Debt Levels (Huffington Post)
Moral Bankruptcy on Student Loans (Huffington Post)