WASHINGTON (AP) - Congress is looking for a way to restore low interest rates on student loans as the clock ticks loudly.
Lawmakers and their aides continue talks about how they could restore 3.4 percent interest rates on subsidized Stafford student loans and retroactively undo the doubling of those rates. Some suggested Wednesday that compromise was at hand, while others tried to shame their political rivals into agreement.
If fresh negotiations prove fruitless, millions of students returning to campus next month will find borrowing terms twice as high as when school let out.
Without congressional action in the coming weeks, the increase could mean an extra $2,600 for an average student returning to campus this fall, according to Congress' Joint Economic Committee.