Expected Doubling of Student Loan Rates Causes Worries Among Local Students
Press Release
This afternoon, Congresswoman Kathy Hochul spoke on the floor of the House of Representatives about a roundtable she held yesterday, where she convened college students to hear their concerns about the expected doubling of student loan interest rates for Federal Stafford Student Loans on July 1, 2012 from 3.4% to 6.8% and the added debt this increase in payments could cost each of them.
"You had to look at their faces and right into their eyes to see the worry these young people had," said Congresswoman Hochul, who hosted a roundtable discussion with college students to discuss the doubling of student loan interest rates yesterday at Daemen College. "We talked about the biggest concerns they had, and it wasn't their final exams, it was whether they could pay for their education next year. One student, who already had $120,000 in debt, told me he didn't know if he could return to school next year since he had already maxed out on the amount of loans he could borrow. Another student said she may need to take on a fourth job just to pay back the debt she already owed. A third student, just one year from graduation, questioned whether he could return to college if the amount he owes increases."
In an effort to keep interest rates low, Congresswoman Hochul has cosponsored legislation that locks in student loan rates at 3.4% indefinitely. If Congress does not act, over 400,000 student borrowers in New York State for the 2012-2013 school year, and over seven million students nationally, will incur an additional $6.3 billion in repayment costs, making loan repayment about $1,000 more expensive for each student annually.
Hochul added, "Student loan debt now exceeds $1 trillion, outpacing credit card debt as the leading cause of financial hardship; you have to ask yourself what is wrong with this picture. Why are our young people, who want nothing more than a shot at the American dream, being strapped for cash? I ask the House to finally bring this legislation to the floor and give all of us the opportunity to vote for this bill."
Source