Student Loan Hike Won't Happen... Just Yet

All together now...*SIGH*... I think a vast majority of us can take that big sigh of relief... at least for now. With the looming weekend deadline fast approaching, congressional leaders have tentatively agreed to delay the doubling of interest rates for new student loans, congressional officials said Wednesday.

The one year extension staves off the act of new subsidized Stafford loans going from its current rate of 3.4 percent to 6.8 percent.

The agreements underscored the pressures both parties face to avoid angering voters and facing embarrassing headlines in the run-up to this November's presidential and congressional elections. Both Democrats and Republicans across the board seemed eager to avoid enraging millions of students and their parents by boosting the costs of college loans.

The $6 billion measure would be paid for by curbing companies' tax breaks for pension payments and limiting federal subsidies of student loans.

The provisional student loan measure would spare an estimated 7.4 million college students who get subsidized Stafford loans beginning on July 1, which is this Sunday, from facing $1,000 in higher interest costs over the lives of their loans, which typically take over a decade to repay.