New student loan interest rates set to double
July 1 is only about a week away and the interest rates on new student loans are set to double from their current rate.
Right now the rates are at 3.4%, but that's expected to increase to 6.8% if Congress does not act to stop the increase.
This means students will have to pay an additional $1,000 for each year that they take out loans, just to pay for education.
"For those ones still paying back their loans or have already gotten their loans, most of them are fixed, so they're not going to effect you," said Steven Sorhus, a certified public accountant in Kirksville. "But for new students coming into Truman that want to start borrowing and taking out loans, that loan is going to cost them more. Interest is essentially the price of money."
President Barack Obama urged Congress to prevent the student loan interest rates from happening.
Again, this increase will only impact those new student loans. So if you are still paying back your loans or have already received them, your rates should be fixed.