Schumer: Block hike in Stafford student loan rate

ALBANY, N.Y. (AP) – Sen. Charles Schumer says he's
backing legislation to head off a doubling of a student loan interest
rate set to take effect on July 1.

He says Wednesday the rate on the federally-subsidized Stafford loans will jump from 3.4 to 6.8% unless Congress takes action.

The increase would affect new loans after July 1.

Schumer says he'll help lead sponsor Sen. Jack
Reed, a Rhode Island Democrat, bring the Student Loan Affordability Act
of 2013 to the floor before the deadline.

Congress voted last year to freeze the rates on the
need-based loans for a year. They had been lowered in 2007 to 3.4% for
the 2011-2012 year.

Reed's bill would extend the freeze for two years
while lawmakers continue working on reauthorization of the Higher
Education Act.

Copyright 2013 The
Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten or redistributed.

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