June 28, 2013
Higher Student-Loan Interest Rates Could Have Political Costs
Susan Walsh, AP Images
If interest rates on federally subsidized student loans double on Monday, as expected, the biggest loser may not be students. It could be Senate Democrats.
Sure, student borrowers will suffer if Congress lets the rates go up on new loans to undergraduates, but not as much as the alarmist rhetoric (and some inaccurate news reports) would suggest. And there is still time for Congress to fix the rate retroactively, before most students sign their loan documents.