Congress Extends 3.4% Interest Rate on Some Student Loans

U.S. House and Senate lawmakers voted to extend for a year the 3.4 percent interest rate for some federal student loans, two days before the rate would have doubled to 6.8 percent.

The measure, adopted as part of a transportation-spending bill, applies to subsidized Stafford federal loans, which are available to undergraduates, whose families demonstrate financial need.