The House and Senate are poised to approve a compromise today that would keep student loan rates from rising. Members of Rhode Island’s congressional delegation tell RIPR they expect the measure to pass both the House and Senate.
The deal stops interest rates on subsidized Stafford loans from doubling. The current rate of 3.4 percent will increase to 6.8 percent on Sunday if the measure does not go through.
An estimated 40,000 Rhode Island students will face rising loan bills without action this week from Congress. Senate Democrats and Republicans are looking for a way to avoid the increase, but if they fail to reach a compromise, interest rates on subsidized federal Stafford loans will double on July 1st, rising from 3.4 percent to 6.8 percent.