WASHINGTON (AP) - Senate Democrats are trying to restore lower interest rates on student loans.
A procedural vote is scheduled for today on a Senate measure that would return rates on subsidized Stafford loans to 3.4% for one year. An earlier attempt in the Senate to keep rates low came up short and those loans' rates doubled to 6.8% on July 1.
The increase does not affect many students right away. Loan documents are generally signed just before students return to campus, and few students returned to school over the July Fourth holiday. Existing loans have not been affected.
Absent congressional action in the coming weeks, the increase could spell an extra $2,600 for an average student returning to campus.