Student loan interest rates set to double after Congress fails to pass legislation

Posted at 10:39 AM, Jul 01, 2013
and last updated 2013-07-01 11:38:00-04

Students using federal loans to pay pricy tuition costs will face the burden of doubled interest rates, effective July 1.

After the Senate failed to strike a deal that was supposed to lower the interest rates of subsidized Stafford loans on Sunday, rates will now spike from 3.4 percent to 6.8 percent and affect over 7 million college students who use these loans.

However, the Senate will take a vote on a bill that would keep the previous 3.4 percent for another year on July 10.