Millions prepare to pay thousands more in student loans - Cincinnati News, Weather, Sports from FOX19 NOW-WXIX

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.

  • FOX19 HeadlinesMore>>

  • New Mexico passenger bus crash kills 3, injures 24 others

    New Mexico passenger bus crash kills 3, injures 24 others

    Sunday, July 15 2018 12:40 PM EDT2018-07-15 16:40:07 GMT
    Sunday, July 15 2018 9:10 PM EDT2018-07-16 01:10:46 GMT
    Authorities say a crash involving a passenger bus and three other vehicles on a highway in New Mexico has killed three people and sent 22 others to the hospital. (Source: CNN)Authorities say a crash involving a passenger bus and three other vehicles on a highway in New Mexico has killed three people and sent 22 others to the hospital. (Source: CNN)

    Authorities say a crash involving a passenger bus and three other vehicles on a highway in New Mexico has killed three people and sent 22 others to the hospital.

    Full Story >

    Authorities say a crash involving a passenger bus and three other vehicles on a highway in New Mexico has killed three people and sent 22 others to the hospital.

    Full Story >
  • Police: Suspect dead after wounding 3 Kansas City officers

    Police: Suspect dead after wounding 3 Kansas City officers

    Sunday, July 15 2018 2:28 PM EDT2018-07-15 18:28:56 GMT
    Sunday, July 15 2018 9:10 PM EDT2018-07-16 01:10:31 GMT
    (Source: KHSB/CNN)(Source: KHSB/CNN)

    Authorities are searching for a suspect in the shooting of two police officers in Kansas City, Missouri. Police spokesman Jacob Becchina said Sunday that the officers' conditions aren't available.

    Full Story >

    Authorities are searching for a suspect in the shooting of two police officers in Kansas City, Missouri. Police spokesman Jacob Becchina said Sunday that the officers' conditions aren't available.

    Full Story >
  • Deadly fire shuts down key route to Yosemite National Park

    Deadly fire shuts down key route to Yosemite National Park

    Sunday, July 15 2018 2:04 PM EDT2018-07-15 18:04:23 GMT
    Sunday, July 15 2018 9:10 PM EDT2018-07-16 01:10:16 GMT
    (Andrew Kuhn /The Merced Sun-Star via AP). Crews battle the Ferguson Fire along steep terrain behind the Redbud Lodge along Highway 140 near El Portal in Mariposa County, Calif., on Saturday, July 14, 2018.(Andrew Kuhn /The Merced Sun-Star via AP). Crews battle the Ferguson Fire along steep terrain behind the Redbud Lodge along Highway 140 near El Portal in Mariposa County, Calif., on Saturday, July 14, 2018.

    A wildfire that killed a California firefighter has grown quickly and forced the closure of a key route into Yosemite National Park.

    Full Story >

    A wildfire that killed a California firefighter has grown quickly and forced the closure of a key route into Yosemite National Park.

    Full Story >
Powered by Frankly