Rolling back a student loan rate increase on Congress' agenda this week

Jul 7, 2013

Congress could act this week to roll back an interest rate hike on a student loan program that many Michigan college students use.

The interest rate doubled for federally subsidized Stafford loans on July 1st.   

The rate went from 3.4% to 6.8%.

Michigan Senator Debbie Stabenow says the federal government will make a $50 billion profit from the student loan interest rate hike.

“We should not be making a profit off of students who are just trying to make ends meet and are frankly coming out of school with thousands and thousands, sometimes a hundred thousand dollars in debt,” says Stabenow. 

About a quarter of the new college student loans written in the U.S. are affected by the rate increase.