College Loan Rates to Double

Following a common theme, Congress failed to cut a deal and then left for recess. Loan rates on Stafford Loans for college students will double from 3.4 percent to 6.8 percent. “This is a big deal for our students,” said Michael Miller, director of Financial Aid at UCSB. He said about 8,000 undergraduates receive these federally subsidized loans. Nationwide, the rate increase is expected to add 2,600 to a student’s debt burden. Congress could still pass a law that would retroactively reset rates. “When you are talking about student loan debt exceeding that of credit cards, it’s unfortunate,” said Miller.