Interest Rate Doubles for 7 Million Student Loan Borrowers

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Congressional inaction has caused interest rates for federally subsidized student loans to double today to 6.8 percent.

All new Stafford Loan borrowers — an estimated seven million students — will be subject to the new rate. 

Students on average are expected to pay $1,000 more each in loan repayments. All in all, student loan programs are expected to generate $50 billion in revenue for the federal government this year.

Read past coverage on today’s hikes:

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Congress failed to pass legislation that would’ve prevented the expiration of a 2007 law that cut Stafford Loan interest rates in half. Photo courtesy of DonkeyHotey via Flickr. 

— Alia Wong

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