Students could see the interest rates on their student loans double this summer if Congreess does not act to extend a rate reduction passed in 2007.
The current interest rate on federal student loans is 3.4 percent. The law permitting the lower rate is set to expire this summer, which would cause them to go back up to 6.8 percent.
“You’re going to lower our rates, and then you’re going to double them? It’s going to hurt a lot of these people around here,” said one student at UNC-Greensboro.
President Barack Obama urged lawmakers to extend the lower interest rate in his State of the Union Address on Tuesday. Obama wants to make college more affordable for middle- and low-income students.
However, Rep. Virginia Foxx, chair of the Higher Education Subcommittee, said extending the loan interest rate would cost about $5 billion. She argues the federal government is what’s causing the costs of college to increase.
“The more money you put into financial aid, the higher the cost of going to college. The schools figure the more money the federal government puts in, the higher they can raise tuition and fees,” said Foxx, who represents the 5th District of North Carolina.
Students who graduated from college
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