The roughly 9 million students who rely on subsidized federal loans will see interest rates double from 3.4 percent to 6.8 percent on loans borrowed after July 1. It’s just the latest chapter in the nearly 50-year saga of the federal government trying to determine the appropriate rate for these loans.
The Obama administration has urged Congress to extend the 3.4 percent rate for one year, but an extension would cost an estimated $3.9 billion. Students and parents trying to plan and pay for college face confusion and uncertainty.
