Student Loan Rate Hike Concerns Local College Students

By Stephanie Parkinson

June 28, 2013 Updated Jun 28, 2013 at 5:36 PM EDT

FORT WAYNE, Ind. (www.incnow.tv) - Some student loan rates will double starting Monday and it has local college students concerned.

Starting July 1 interest on government subsidized Stafford loans will jump from 3.4 percent to 6.8 percent. This is because Congress failed to strike a deal before their recess.

Several proposals have been discussed by lawmakers in Washington D.C. to prevent this from happening, but no action was taken before they went into their 4th of July recess.

A bipartisan plan that was introduced would only increase the interest on subsidized and un-subsidized Stafford loans by 1.85 percent. A democratic group is pushing to keep the rate the same. Several republicans are reluctant to do that.

Adam Lennon is a pre-med student in his second year at IPFW. He has plans to go on to med school but says, to afford it, he might have to enlist in the military.

"You can do Navy ROTC programs and they can take care of things like that. I wasn't really all into it but I mean, if it is a choice, it's what I might have to do rather than be an extra $200,000 in debt," said Adam Lennon, IPFW Sophomore.

If Congress does reach an agreement when lawmakers return to Washington D.C. they could make it retroactive and avoid the doubling rate of the subsidized Stafford loans, which is set to take effect this fall.

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