Millions prepare to pay thousands more in student loans - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Student loan rates double overnight

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.

  • NewsMore>>

  • Dakar Burkes Memorial Car Show held in Louisiana

    Dakar Burkes Memorial Car Show held in Louisiana

    Saturday, May 19 2018 10:01 PM EDT2018-05-20 02:01:04 GMT
    The roar of high power engines and vintage classic automobiles were on display in one East Texas city, in an annual tribute to a young man, who was a homicide victim, who loved cars. The 9th annual Dakar Burkes memorial car show was held in Lakeport. Racers came in from thunder road Louisiana, as well as collectors from all over the state, to be part of the memorial car show. "They called us, invited us to this event, the cars behind us they run at that track so we brought the...More >>
    The roar of high power engines and vintage classic automobiles were on display in one East Texas city, in an annual tribute to a young man, who was a homicide victim, who loved cars. The 9th annual Dakar Burkes memorial car show was held in Lakeport. Racers came in from thunder road Louisiana, as well as collectors from all over the state, to be part of the memorial car show. "They called us, invited us to this event, the cars behind us they run at that track so we brought the...More >>
  • One person confirmed dead after fatal wreck on Highway 11

    One person confirmed dead after fatal wreck on Highway 11

    Saturday, May 19 2018 9:10 PM EDT2018-05-20 01:10:03 GMT

    One person was killed in a fatal crash in Hopkins County Saturday morning.

    More >>

    One person was killed in a fatal crash in Hopkins County Saturday morning.

    More >>
  • No injuries in late night Smith County house fire

    No injuries in late night Smith County house fire

    Saturday, May 19 2018 6:59 PM EDT2018-05-19 22:59:31 GMT
    (Source: KLTV News Staff)(Source: KLTV News Staff)

    Several fire departments are on scene where a large fire is burning near the toll road.

    More >>

    Several fire departments are on scene where a large fire is burning near the toll road.

    More >>
Powered by Frankly