Students At UALR React To Loan Interest Rate Hike
After interest rates on new Stafford student loans for low income applicants doubled this week, many wonder if Congress will be able to arrive at a solution to keep rates low. On the campus of the University of Arkansas at Little Rock, some students reacted to news of the rate hike.
“It’s sort of the sacrifice you make if you’re going to do years of education. You know, there’s those years of income you don’t get a lot of times and so you [ask yourself] which one is going to put you further,” said H.L. Moody, who has been going to college off and on for the past ten years.
“People are a little bit shy now about the loans, because of that, not knowing what’s going to happen, what the interest rate is going to do how it’s going to affect them,” said Camille Guest-Mitchell, a financial aid adviser and computer science student.
“Makes you think what it’s worth and if they’re going to raise [the interest rates] again, then that makes it even worse at that point because you’re going to end spending a lot more for it and it’s going to take longer to pay it back. My mom is stilling paying back her loans 20 years after she graduated,” said John Fitzhugh.
Low-income students who apply for federally subsidized Stafford loans for the upcoming fall semester will see their interest rates double from the current 3.4 percent to 6.8 percent.