Student loans are a headache for college graduates. However, they will be hit with another financial burden as the interest rates could double.
Frank Willshire, a software engineer who is still paying off loans incurred from college and graduate school asks why this is happening, and is pretty concerned about the interest rates doubling.
Currently, Stafford loan rates or interest rates for need-based are fixed at 3.4 percent. However, this will double to 6.8%, if Congress does not step in.
Emilio Ramos states that it would be devastating for his nephew, Justin, who would not be able to afford to go to school, as he currently attends Edison State College on student loans. An increase in the interest rates could hurt Justin’s future and the future of many young people likewise.
Higher interest rates would help the government. It would generate $36 billion for Congress. Willshire remarks however if that is the first place possible to get the money from. It is devastating for young people who are vulnerable economically at their state in life.
Over a ten year period, students would have to repay as much as $5000 more if the interest rates double. Lawmakers are trying to come up with a solution or a deal to save the seven million college students to take loans this year.
The increased interest rates will go into effect today, if Congress does not make a decision.