ST. LOUIS (KMOX) - Student loan interest rates will double today after Congress failed to act on a fix before members went on a ten-day vacation.
Sen. Roy Blunt, R-MO, says there is a bill being considered that would be a more permanent fix.
“It would just set a standard not just for the subsidized Stafford loans but for all the Stafford loans, subsidized or not, and guarantee a cap on loans,” Missouri’s junior senator said in a conference call last week.
Blunt says the bill would also freeze the rate at whatever it was at the time a student borrows it. He says he doesn’t know why that bill has not moved faster but is sure members will vote on it after the July 4th holiday.
Before the hike, rates were at 3.4 percent. Monday they jumped to 6.8 percent.
“You’re going to have 18 million students borrowing money between now and the fall and they’re trying to decide right now with their families whether they can afford to go to school or not,” Blunt said.