WCCO EYE4 LOGO WCCO Radio wcco-eye-white01, ww color white

Local

Legislators Come Up Short: Student Loan Rates Double

View Comments
(credit: Jupiter Images)

(credit: Jupiter Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up
Today's Most Popular Video
  1. WCCO Interview: Girl Behind 'Simon Says Give'
  2. Premeditated Murder Charges Dropped In Waseca Plot Case
  3. 4 Things To Know For 7/29
  4. Lakeville Firefighters Shave Heads For Girl Undergoing Chemo
  5. Polaris Debuts New Slingshot Motorcycle

MINNEAPOLIS (WCCO) – Interest rates for student loans have doubled.

The House and Senate failed to come up with a compromised bill during this past session, so the subsidized Stafford Loan rates jumped today from 3.4 percent to 6.8 percent.

Some 7 million students across the nation use them, including about 200,000 in Minnesota.

Minnesota Sen. Al Franken co-sponsored a bill that would have extended the lower rate for a year, but it failed to pass.

“It’s especially important to a Minnesota Senator,” Franken said. “We have the distinction of having the third highest level of debt for our students who graduate — $30,000.”

Republicans are proposing that loan interest rates are tied to the rate of U.S. borrowing.

A vote to restore the lower rate is scheduled for July 10.

Franken said at that time the rate can be retroactively readjusted.

View Comments
blog comments powered by Disqus