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July 2, 2013

US student loan rate to double

Student debt crisis worsens as deadline passes for Congress to fix interest rates.

graduation caps
Caps of graduates at the Unversity of Nebraska - Lincoln. Flickr user John Walker.

US student debt, which recently surpassed a trillion dollars, may become an even greater burden on university students. Today, the interest rate for a federal student loan doubled from 3.4 per cent to 6.8 per cent because US lawmakers were unable to come to an agreement prior to its Independence Day recess. The rate increase, which is expected to add $1,000 in interest to borrowers' loans, will affect about 7 million students this coming school year.