Congress' inaction doubles student loan rates
Tue, 02 Jul 2013 00:56:48 GMT —
Today, students applying for a new federal loan will have to pay twice the interest.
Congress failed to fix loan rates and millions of college students will pay twice the interest rate.
Rates soared from 3.4 percent to 6.8 percent overnight, and nearly 7.5 million students will be forced to pay more than they previously had.
Congress still has time to fulfill its pledge to restore lower rates when it returns after the July 4 holiday, according to the Associated Press.
"That TMs your job because that TMs your future, Garcieli Garcia tells her daughter who attends the University of Texas Pan-American.
She said without the help of subsidized government loans, her family could not afford to pay the tuition.
"She would not be able to make her living expenses meet. We're on a fixed income. My husband is disabled and I'm the only one that works," Garcia said.
South Texas College's Financial Outreach Specialist Judy Anzaldua said her job is to help students understand how loans and financial aid work.
"How much am I going to end up owing? How much am I going to end up paying the long run?," Anzaldua said.
Starting today, interest rates have doubled to 6.8 percent for students applying for new student loans.
"It TMs cause for concern especially because it TMs going to affect so many students across the us and here in the valley as well," said Anzaldua.
Bringing up interest rates is just going to harder for students . I think they're going to have a higher default rate," agrees Garcia.
Garcia worries the new rates on student loans will do more harm than good, but said a great education is invaluable.
"You TMre education, nobody can take it away," reassured Garcia.