Student Loan Rates Double

Unless Congress makes a retroactive change, the interest rate on subsidized student loans doubles today from 3.4 percent to 6.8 percent. So what does this mean to you? The article notes that the average student loan balance in 2011 was $27,000. Although this figure undoubtedly includes non-subsidized loans, suppose you graduate with $27,000 in subsidized student loans and make monthly payments over 20 years. How much would you pay under each scenario? At 3.4 percent interest, see if you don't agree that your payments would be $155.21 per month, while at 6.8. percent, the payments would be $206.10 per month.