Indecision from Congress means that the new Stafford student loan rate of 6.8% is here to stay. The rate doubled on July 1st due to Congress’ inability to agree on a new proper rate. Most sources claimed that Congress would soon agree on a deal to bring the Stafford federal student loan rate back down. They didn’t, and now the outrageous 6.8% interest rate will remain until further notice.
Democrats in Congress looked to pass a bill that would keep the Stafford Loan interest rate at the former 3.4% for an additional year, so as to give Congress more time to restructure the program. The time extension failed to pass as most Republicans, and some Democrats rejected the extension with the intent of forcing congress to address the interest rate sooner. The result of this indecision means that new college students will now pay double the interest rates on their student loans.
Senator Tom Udall put the extension failure into context. He said, "Today, we failed… And our nation's students pay the cost of that failure."
The rate doubling does not affect previous students, but will apply to all future college students. In reality, congress has until the middle of August to fix the rate. If not, thousands of new college students will be forced to take on loans at the absorbent new rate.
Congress can’t work together, and the victim is eighteen-year-old kids that simply want a college education. By doubling the rate, these young people will be forced to pay thousands more in their 20’s and 30’s in order to pay off their loans. Student debt has, and will continue to ruin the lives of young people across the nation. If the Stafford interest rates stay at 6.8%, it will be further proof that congress cares more about party politics than the lives of the next generation.