Stafford Loan interest could be 6.8% by July - KWWL - Eastern Iowa Breaking News, Weather, Closings

Stafford Loan interest could be 6.8% by July

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WASHINGTON, D.C. (KWWL) -

At least seven million college students with Stafford Loans may see the interest rate double in July unless Congress acts soon, President Barack Obama said.

Time Magazine reports the interest rate would increase from 3.4 percent to 6.8 percent unless the College Cost Reduction Access Act is passed.

College students are delivering 130, 000 letters to congressional leaders asking them to stop the hike.

President Obama said he wanted to help low and middle class college students. He asked Congress to keep rates at the lower rate. He says this would save the student more than $1,000 over the life of the loan.

Keeping the lower rate is estimated to cost the government billions more annually.

 



 

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