Alternative Solutions to "Don't Double My Rate"

By Ben Miller. After Congress failed to reach a deal last week, the interest rate on new subsidized Stafford loans officially doubled from 3.4 to 6.8 percent on Monday. Though there's speculation that Congress may vote on a retroactive change next week, there still appears to be a big divide between those arguing for tying loans to market rates and those arguing for another temporary extension of the 3.4 percent rate. So we think it's time to explore some more creative solutions to the Game of Loans problem. Below are some suggestions, but feel free to offer your own in the comments. Read more...