Schumer called on Congress to pass Sen. Jack Reed's (D-R.I.) bill, S. 2051, which is pending in the Senate Health, Education, Labor and Pensions Committee.
Stafford Loans are offered directly from the U.S. government, making it easier for Congress to adjust the interest rates. Stafford Loans only go to the students most in need, and students typically do not have to start paying them back until six months after graduating. The federal government pays the interest while the student is in college, unlike unsubsidized Stafford Loans — which more students qualify for.
If Congress doesn't extend the 3.4 percent interest rate, students enrolling in college after July 1 would have to pay a 6.8 percent interest rate on their subsidized loans after graduation.