Drowning in debt

Kylie Lacey's picture

As young people drown in student debt, Congress is debating how much water it should add to the pool.

The House of Representatives voted last week to head off a doubling of student loan interest rates on July 1, but allow those rates to vary with the markets moving forward.

The bill's passage sets up a showdown between the House Republicans who backed the measure and Senate Democrats, who favor extending a subsidized loan rate of 3.4 percent for at least two years.

The nonpartisan Congressional Research Service estimates that students who max out their subsidized Stafford loans over four years would pay nearly $4,900 more in interest payments under the House bill than if rates were kept at the lower level.

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