Interest Rates on Student Loans May Double - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Interest Rates on Student Loans May Double

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SALISBURY, Md.- Corey Sznajder, of Salisbury, just graduated from Salisbury University.
But he is having a hard time staying afloat.

That's because he's swimming in student loan debt.

"I have about $20,000 or so in loans right now," said Sznajder. He's not alone.  C.J. Johnson, of

"I think I'm actually like at $10,000 in debt," said Johnson.

Last year the national average debt of a student was $25,000.

"It's kinda tough to really compromise or justify going to college for four years, when you might not be able to pay off all of these debts until you are in your mid 30s or so," said Sznajder.

Nearly seven million students are in collections and those who haven't graduated yet, worry they, too won't be able to keep up.

That's because on July 1st, the interest rates for some students, those receiving federal subsidized loans, could double if 'Uncle Sam' doesn't step in.

"Raising the interest rate seems kinda crazy, well actually ridiculous, when you consider how much debt we are going to be in as it is," said Sznajder.

Rates could go from three-point-four percent to six-point-eight.

"If the government does anything to raise, you know the cost of students that's going to just kill us," said Johnson. "I mean we are already in debt after our first year."

Congress and the White House agree something should be done to prevent the hike. But what they don't agree on is how.

The number of students in debt is likely to go up, if the interest rates do as well.

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