Will Congress Double Student Loan Rates? 5 Things to Know for the Week

Simon Zhen

Updated on Tue Jul 15, 2014

The countdown to July 1 begins. That’s the day when interest rates on student loans will double, increasing the already-expensive cost of a college education. So far, lawmakers have been unable to agree on an acceptable measure to prevent this from happening. Will government resort to brinkmanship once again?

hardtopeel / Flickr | http://www.flickr.com/photos/61804017@N07/7196945640/

hardtopeel / Flickr source

  • On Tuesday, TD Bank customers with Simple Checking accounts will see new monthly fees take effect. The account’s fee will increase from $3.99 to $5.99. The $1 discount for choosing electronic statements will remain. Since the account doesn’t come with fee waivers, customers can expect to pay $24 more per year for the account.
  • BMO Harris has given a makeover to its mobile banking applications, which now sport a much cleaner, easier-to-navigate layout. Based the user reviews in the Apple App Store and Google Play, the new update appears to provide a less glitchy experience compared to older versions.
  • On Wednesday, the final approval hearing for PNC Bank’s overdraft settlement will be held. The settlement involves customers who paid overdraft fees as a result of PNC’s transaction posting order from Jan. 1, 2004 to Aug. 15, 2010. If approval is granted, eligible customers may receive a payment or refund.
  • It’s the last week before interest rates on federal student loans are scheduled to increase from 3.4 percent to 6.8 percent. While there have been some proposed bills to avert the rate hike, none have been passed successfully by Congress. If the past is any indication, lawmakers will likely engage in a last-minute attempt to pass a measure to stave off the rate increase.
  • Banks have devised a plan to restructure the nation’s too-big-to-fail financial institutions in the event of a crisis, according to the Wall Street Journal. The proposal was submitted to federal regulators in a private meeting in May. Under the proposed plan, the biggest financial companies will be required to hold a combined debt and equity equal to 14 percent of their risk-weighted assets.

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  • highinterest

    That picture is a crock of you-know-what. My parents worked their tails off to get college educations. They, my brother, and I worked our butts off so my brother and I could get college educations. He went to a public university, and I went to a private school from which I finagled an academic scholarship. We went where we could graduate without going into debt. I chose to enter the workforce and forego a higher degree because I chose to not go into debt. Many of today’s students think they can run up the debt, then just have us, the taxpayers, absorb the hit when they feel like walking away from their obligations.
    Next, they’ll say that a house is a right and mortgage debt a crime.
    What a whiny bunch of entitled little pukes.