Government-Subsidized Stafford Loan Rates Could Rise

Updated 11 months ago

Barring some sort of last minute compromise between congress and the white house millions of college students will soon see a big spike in the interest rates of their college loans.On July 1st, the rates on a government-subsidized Stafford loan are set to double from 3.4% to 6.8%.“I’m excited that I get to go to the college of my choice,” said Dylan Farber, Deering High School Senior.Deering High senior Dylan Farber’s heading to the University of Denver, his top choice, it does however, mean he’ll be racking up thousands of dollars in student loans.”I don’t particularly want to come out of school in debt but it’s going to happen,” said Dylan Farber, Deering High School Senior.Debt, which millions of college students across the country struggle to repay, and now, with interest rates on government subsidized Stafford loans apparently set to double.”I think it’s potentially devastating,” said Tracey Moore, Deering Guidance Councilor.High school guidance councilor Tracey Moore advises students and parents on their college choices, and while potentially devastating to current college students, she also believes there needs to be a better balance, and a sizable increase in interest rates could finally have more families taking a closer look at what defines the ‘best college’.”I think families and parents first and foremost need to be very practical about what they can afford,” said Tracey Moore, Deering Guidance Councilor.”The whole cost was pretty much my number one decision,” said Billy Farrell, Deering High School Senior.So Billy Farrell opted for his second choice, and though he’ll still be taking on debt to attend Saint Michaels College in Vermont.He believes the trade off is worth it if it’s a college he’ll enjoy.“It’ll make the loan less severe than if you just go to a college that you don’t have as good of a time with but you have less money,” said Billy Farrell, Deering High School Senior.But many wonder how much more debt can a young college graduate take on?Already, according to the institute of access and success, last year’s college seniors graduated owning an average of about $27,000.


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