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SALT LAKE CITY — Millions of college students across the country got unwelcome news Friday: Congress left for a holiday break without passing a bill to prevent interest on student loans from doubling.
Beginning July 1, interest on new federally subsidized loans for undergraduates will rise from 3.4 percent to 6.8 percent. The change will not affect existing student loans.
Estimates show the increase will add about $4,500 to a 4-year degree.
"I'm upset. I really am," said University of Utah student Joshua Allam.
He is currently $13,000 in debt and still has two semesters remaining before he earns his degree.
"That's at least another $5,000 or $5,500 if I have to take loans, which I might have to. So I'll be up to about $18,000 by the time I'm done," he said.
Congress has been working on a new student loan bill, but Democrats and Republicans have different proposals. Both sides tout their bill as the best.
- One out of every five adults over age 20 owes money on student loans.
- The average amount of student debt in Utah is $18,000.
That doesn't sit well with students who are facing more debt. A group of them marched at the U.S. Capitol in Washington D.C. Friday morning to express the opinions of students everywhere.
"Don't let my rates double," the crowd chanted.
Student debt in the U.S. has skyrocketed. In 2007, it totaled $550 billion. Today, it's double that. Money, and paying it back, is the key issue. But some students, like Tisi at the U., said there is a bigger picture to consider.
"With the work load that students have, having to pay more for your student loans will really affect their grades," she said.
Another student, Benjamin Duckworth, said, "I think if the rates go up, the turnout of students capable of going to college will plummet, thereby affecting the workforce."
Related:
Opinion: Congress must extend low rates for student loans
There has been significant discussion in Congress about access to affordable higher education, the role of the government in attaining it and the priorities our nation places on a highly educated workforce.Members of Congress said the student loan issue will be a priority when they return. They hope to have something in place as early as July 10. Millions of college students are anxiously waiting.
"I notice a lot of my friends can't find jobs that pay more than $10 an hour without a degree," said student Kurt Schneider. "I think the more breaks you can cut us, the better."
