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Federal Student Loans' Interest Rates To Increase After Senate Goes On Recess

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TWC News: Federal Student Loans' Interest Rates To Increase After Senate Goes On Recess
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A big increase in the interest rate for federal student loans is set for Monday, but there could be some relief later on down the line.

The Senate could not reach a compromise before the July 1 deadline, and left for its Fourth Of July recess.

Rates will go from about 3.5 percent to almost 7 percent.

The chairman of the Senate Education Committee has said a vote to retroactively freeze rates for a year should take place next week, as lawmakers will continue to work out a deal.

The Republican-led House Of Representatives has already passed a proposal tying interest rates to the 10-year treasuries.

That is in line with the White House plan, but Senate Democrats said the proposal left too much room for fluctuations.

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