Student Loan Plan High on Congressional Agenda
Congress is back in session Monday following a break for the Fourth of July holiday.
One of the major issues up for discussion is student loan rates. The Senate failed to reach a compromise before a July 1 deadline and now interest rates on federal student loans have doubled from 3.4 percent to 6.8 percent, which is higher than most loans available from private lenders.
Lawmakers promised to restore lower rates when they return this week, both retroactively and before students start signing loan documents later this summer. Before that can happen a compromise will need to be reached on whether to create a cap on new loans to protect from possible interest rate spikes.