Senate passes fix to student loan rate hikes - WVVA TV Bluefield Beckley WV News, Weather and Sports

Senate passes fix to student loan rate hikes

BLUEFIELD, W. Va (WVVA)-- Without more congressional action, your child could be paying more for school.

Federal student loan interest rates doubled July 1st.

But Wednesday, the US Senate passed the Student Loan Certainty Act, which brings those rates back down.

It also ties them to the ten-year treasury note.

Senator Joe Manchin, one of the bill's sponsors, says if it passes the House as well it would bring rates down not just for new loans, but those who already signed for loans under the higher rates.

Manchin told WVVA, "If you've gone and gotten a loan, July 1'st you [may have started] planning... This is retroactive starting this school year. Starting in 2013.  If they took a loan out after July 1st and it was 6.8 percent increased, then it will go back to 3.86%."

Manchin adds that the rates decreases provided by the Student Loan Certainty Act sweep across the board-- from undergraduates all the way to graduate students.

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