Student Loans: Will Interest Rates Double?
The Voice recently reported that the interest rates on federally backed Stafford loans will double July 1 -- from 3.4 percent to 6.8 percent -- unless Congress gets its shit together.
Well, it looks like some legislators in the House are trying to prevent this increase -- by cutting funding to health programs, that is.
As detailed by the Associated Press (via Washington Post), House Republicans "would cover its $5.9 billion cost by plucking money from a preventive health fund established in President Barack Obama's 2010 health care overhaul law -- a cut many Democrats are reluctant to make."
Ugly move, right?
Anyway, the Congressional chamber will likely vote on the bill today.
Senate Dems, on the other hand, have offered a bill that would find the funds by making sure high income corporation owners would not be able to get out of Medicare and Social Security payroll taxes.
These proposals would not address graduate student loan interest rates. As the Voice explained earlier this month, those will no longer be subsidized come July. The news also comes just as Cooper Union announced that grad students will have to pay for tuition.
The Voice will keep you in the loop of any developments.
Follow Victoria Bekiempis @vicbekiempis.