The Wall Street Journal reported that the House today passed a resolution to keep the current interest rate on student Stafford loans at 3.4% for the 2012-13 school year. The Senate is scheduled to vote on a similar bill on May 8th. Without Congressional consensus, student loan interest rates will increase to 6.8% for the 2012-13 school year.
While interest rates may not rise for the upcoming 2012-13 school year, given its an election year, families and students should plan forward for increasing costs of borrowing money for college in subsequent years of college.
Be prepared for continued debate on student loan interest rates. Some Republicans are proposing variable interest rates in the future on student loans. (Currently, interest rates are fixed for the life of the loan.) President Obama has been speaking at college campuses in the last week, even appearing on Late Night with Jimmy Fallon.