Student loan rate hike: What you need to know

The bell has been rung in the next round in the fight over student loan interest rates, and borrowers could take it on the chin this time. On July 1, if Congress does nothing, the interest rate on federal subsidized Stafford student loans will double from 3.4% to 6.8%.  “It’s not the end of the economy as we know it,” says Mark Kantrowitz, publisher of student-lending websites Fastweb.com and FinAid.org. He’s right, but that doesn’t mean it won’t really stink, especially for the poorest college students. Advocacy group U.S.

The bell has been rung in the next round in the fight over student loan interest rates, and borrowers could take it on the chin this time. On July 1, if Congress does nothing, the interest rate on federal subsidized Stafford student loans will double from 3.4% to 6.8%.  “It’s not the end of the economy as we know it,” says Mark Kantrowitz, publisher of student-lending websites Fastweb.com and FinAid.org. He’s right, but that doesn’t mean it won’t really stink, especially for the poorest college students. Advocacy group U.S.

Student loan debt is now one of the Obama Administration's biggest cash cows. The government is poised to pocket a record $51 billion profit from federal student loan borrowers this year, according to a report by the Congressional Budget Office. 

America's student loan debt problem is nothing new: For years, the media has been offering up a flood of stories about people facing decades of debt repayment and crushing interest rates.

Consumer protection maven Sen. Elizabeth Warren, D-Mass., introduced her first piece of legislation this week, a proposal that would allow students to take out government educational loans at the same rate that big banks pay to borrow from the federal government. Under her Bank on Student Loans Fairness Act, for one year, new student borrowers would be able to take out a federally subsidized Stafford loan at 0.75%, compared with the current 3.4% student loan rate.

Consumer protection maven Sen. Elizabeth Warren, D-Mass., introduced her first piece of legislation this week, a proposal that would allow students to take out government educational loans at the same rate that big banks pay to borrow from the federal government. Under her Bank on Student Loans Fairness Act, for one year, new student borrowers would be able to take out a federally subsidized Stafford loan at 0.75%, compared with the current 3.4% student loan rate.