Student loan interest rate hike kicks in
College students will notice interest rates on new loans for the fall term will be double what they were just last spring - unless Congress follows through on its pledge to restore lower rates when it returns after the July 4th holiday.
The interest rates on subsidized Stafford loans jumped from 3.4 percent to 6.8 percent yesterday.
In this feature interview with Edward O'Brien, the Montana University System's director of State Financial Services, Ron Muffick, explains why the rates rose so dramatically and what sort of impact - if any - he thinks it may have on students.
Muffick points out that the only kinds of loans affected by yesterday's interest rate hike are these subsidized Stafford loans