Rates double on student loans
Student loan rates will be doubling because lawmakers could not come to an agreementPhoto: Video by ktnv.com
Las Vegas, NV (KTNV) -- It's being called doomsday for million of Americans paying off their college student loans.
Interest rates doubled at the stroke of midnight.
It may not sound like a lot but the double of interest rates to 6.8 percent can add more than $20,000 over 10 years on federal Stafford loans.
More than seven million students will feel the that pinch.
The doubling of the interest rate happened because lawmakers on Capitol Hill couldn't agree on what to do.
Democrats wanted Congress to be able to set interest rates. Republicans wanted to let the free market decide.
Now, students will feel the effect of Congress' inaction.
The good news is that it could all be temporary.
If Congress can come to an agreement, the new rate could be lowered back to 3.4 percent.