A Student-Loan Fix?

Not yet. Math still eludes lawmakers

On July 1, 7 million college students will see their federal-loan rates double unless Congress can muster a compromise. The good news is neither Democrats nor Republicans want the looming rate hike to happen. The bad news is they can't agree on how to stave it off.

House Republicans passed a bill in late May that would scrap the subsidized rate for federal Stafford loans of 3.4%--set to spike to 6.8%--and instead peg rates to the yield of 10-year Treasury notes. The move mirrors parts of a plan put forth by President Obama, whose 2014 budget proposed linking the interest rates...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!