Students taking out federal loans may face increasing interest rates
GREENSBORO, N.C. — Students taking out federal loans to pay for their secondary education may be facing interest rates double the current rate.
If Senators cannot agree on a plan, the student federal loan interest rate will increase from 3.4 to 6.8 percent on July 1st.
This would impact an estimated 7 million students applying for loans. It would not affect interest rates on loans from previous years.
Saleena Knight is now officially a graduate of Dudley High School in Greensboro. She’s the first in her family to go to college and is waiting to hear about whether she has received certain scholarships.
“The first thing you worry about when going to a top ranked school is — oh my gosh, tuition. It’s like $17,000,” she said. “Financial aid doesn’t cover everything so that is a big concern for me.”
In a statement released from the White House, President Barack Obama said, “More than seven million students who rely on these student loans… should not be burdened with additional college debt.”
The President added, “Congress must act immediately.”
Knight said students like herself want to know affordable loan plans are available if they need them.
“I plan to be better than the people before me. And I want to make a mark,” she said.