Student Loan Interest Rates Will Double Starting on July 1
Written by Your 5News Team
Last updated on July 01, 2013 @ 12:11AM
Created on July 01, 2013 @ 12:09AM
Students taking out subsidized government loans will see their interest rates double.
Previously there was a 3.4% rate on loans, but on July 1, the new rates will jump to 6.8%. This shift will only apply to students taking out new loans, so those of you who already feel the pressure of paying back loans will not be affected. Outsized student debt has become a very pressing issue. In 2011, students on average owed nearly $27,000 in loans.
Students and faculty are in awe that these rates are doubling.
Brittany Wallace, a WVU faculty member, said, " I just think it's awful that they're going to raise the rates on student loans, double it, when there is already an issue with students graduating and not being able to find jobs and there is a giant loan repayment issue."
State democratic leaders are hoping to pass a bill to extend the old rates, but as of now, students are being told to prepare for the worst but hope for the best.
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