Until June 29th, a big problem was brewing for college students but less than two days before the deadline, Congress agreed on a bill that would avert larger student loan payments for some students.
The cost of college rises at roughly twice the rate of inflation each year. This equates to nearly 6% annually and that has made college tuition out of reach of the majority of families that didn’t save for education costs. Because of that, most students now rely on grants and loans to pay the costs. Grants quickly run out for most leaving student loans as their only option.
The federal government helps by offering two types of loans, called Stafford loans.