Millions prepare to pay thousands more in student loans - 19 Action News|Cleveland, OH|News, Weather, Sports

Student loan rates double overnight

Posted: Updated:
CINCINNATI, OH (FOX19) -

As July rolls in, more than 7 million students nationwide will notice an increase in student loan rates.

With the transition from  June to July, student loan interest rates doubled overnight. As of midnight, student loan interest rates increased from 3.4 to 6.9 percent.

Despite several bills being introduced as a solution, Congress has left them untouched as they head to a week-long recess for the July 4 week.

Congress agrees that something needs to be done, but they cannot agree on what. Senate Democrat leaders are pushing to extend 3.4 percent rates for another year. However, Republicans want to see a long term solution such as low rates now, but a rise with market rates in the future.

FOX19's Kelly Rippin details a few facts about student loans that may surprise you.

  1. Co-signers can suffer just as much as the person who is taking out the student loan. A missed payment or a default will equally affect a cosigner.
  2. Student loans can keep you from home ownership. It affects your debt income ratio and you may not qualify for a mortgage loan.
  3. Bankruptcy is rarely an option. In the 1970s, Congress passed a ban that would ban federal student loans from being discharged in bankruptcy

Student loan debt is the second largest debt that consumers carry. Student loans are second to mortgage debt. In 2010, student debt loans rates hit the $1 trillion mark of outstanding loans. 

Copyright 2013 WXIX. All rights reserved.

  • Seen on 19Seen on 19More>>

  • 51 UPS locations breached by malware

    UPS notifies customers of potential data compromise

    Wednesday, August 20 2014 8:51 PM EDT2014-08-21 00:51:58 GMT
    The UPS Store discovered malware identified in the bulletin on systems at 51 locations in 24 states (about 1 percent) of 4,470 franchised center locations throughout the U.S.
    More >>
    The UPS Store discovered malware identified in the bulletin on systems at 51 locations in 24 states (about 1 percent) of 4,470 franchised center locations throughout the U.S. UPS is providing an information website, identity protection and credit monitoring services to customers whose information may have been compromised.
    More >>
Powered by WorldNow