Valley college students fear loan interest rate hike
Tue, 26 Jun 2012 23:49:15 GMT —
Millions of college students are waiting on Congress to make a move.
If the House doesn't act fast, student loan rates could go up next week.
According to TexasPIRG, Latino students will be the hardest hit by this hike.
July first, the interest rate on federally subsidized loans will increase from 3.4 percent to 6.8 percent.
It would mean the average student would have to fork out another $950.
Students and staff at UTB and UTPA are joining other universities calling on both Senator Cornyn andHutchison to support a bipartisan bill that would keep the interest rates at a low level.
According to UTB Director of Financial Aid Mary Comerota its hard enough for Hispanic students who are often times the first in their family to go to college and now having to pay even more could keep some from attending.
"Certain cultural barriers to student aid such as an aversion to taking out a loan exists within the Latino community," said Comerota.
UTPA Student Body President Matthew Garcia wants to get the word out to politicians about what the possible hike will mean for his fellow students.
"We end up tied down by our debt. The addition of an average $950 a year to that debt which will be brought out by this rate hike is simply to much to ask of the students of this state," said Garcia.
According to YoBucko.com students like Garcia need to remember to read the fine print when filling out loan applications.
The best advice from the experts is to only borrow what is needed.
Second, pay off the interest early or get ready to pay more in the long run.
Congress is expected to vote on the issue Monday.
It's up to them to decide if students will be paying more to go to college.