Students Worry as Loan Interest Rate Increase Nears

4 years 6 months 1 week ago Monday, June 03 2013 Jun 3, 2013 Monday, June 03, 2013 12:10:00 AM CDT June 03, 2013 in News
By: Courtney Doll

COLUMBIA - The U.S. Senate will vote this week on proposals to avoid an increased interest rate on federally subsidized student loans.

Currently, the interest rate on these loans is 3.4 percent. If no proposals are passed, the interest rate will double to 6.8 percent on new loans taken out after July 1. This equals an approximate $1,000 increase in the lifetime cost of each loan taken out.

MU student Kayla Erney uses her loans for tuition, housing and food. She said she doesn't have the money to cover new loans at increased interest rates.

"Once I graduate, it will probably be loans to pay off loans to pay off loans to pay off loans," she said. "It's definitely going to be a long process--lots of debt."

Students can take out federally subsidized or unsubsidized student loans. Private loans from banks and financial companies are also available. Interest does not accrue on federally subsidized loans during the time a student is in school, while interest builds up on unsubsidized loans from the moment they are taken out. The interest rate increase in question in Congress applies to federally subsidized student loans.

Sen. Claire McCaskill, D- Mo., is co-sponsoring an alternative student loan reform bill with Sen. Elizabeth Warren, D- Mass. The bill would set the interest rate for federally subsidized student loans at .75 percent, the same interest rate that banks get from the Federal Reserve. The bill is not currently set for a vote.

Sen. Roy Blunt, R- Mo., issued this statement through his press secretary:

"We can all agree that every young American should have the opportunity to achieve a college education...I believe we should work together to achieve a bipartisan, common-sense solution that will provide permanent reform to help young Americans avoid a higher interest rate on their student loans."

More News

Grid
List
COLUMBIA – The University of Missouri hit a major fundraising milestone, announcing Wednesday it reached the $1 billion mark. ... More >>
1 hour ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 12:08:00 PM CST December 13, 2017 in News
MILLER COUNTY - Prosecutors charged a Miller County man with failing to comply with sex offender registration for a third... More >>
3 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 9:44:00 AM CST December 13, 2017 in News
COLUMBIA – The growth of Columbia Regional Airport is set to take another step forward Wednesday morning. Mayor Brian... More >>
5 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 8:04:00 AM CST December 13, 2017 in News
COLUMBIA - SWAT teams broke in to a home on Fir Place following a standoff early Wednesday, but did not... More >>
5 hours ago Wednesday, December 13 2017 Dec 13, 2017 Wednesday, December 13, 2017 7:55:00 AM CST December 13, 2017 in News
COLUMBIA - For people in jail, it's sometimes difficult to get together the funds to bail out. That's where... More >>
14 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 10:24:00 PM CST December 12, 2017 in News
MONTGOMERY, Ala. - Alabama Republican Roy Moore, beset by allegations of sexual misconduct, lost his bid to become a senator.... More >>
15 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 9:30:00 PM CST December 12, 2017 in News
JEFFERSON CITY - The former Cole County Chief Juvenile Officer sued his former boss and the Cole County Commission Tuesday,... More >>
17 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 7:33:00 PM CST December 12, 2017 in News
BOONE COUNTY - An abandoned car caught fire Tuesday at the intersection of East Broadway and South Rolling Hills Road.... More >>
17 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 7:21:00 PM CST December 12, 2017 in News
Update: Police said the investigation into the Monday Old Hawthorne homicide revealed a home invasion and drug use. Investigators... More >>
17 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 7:21:00 PM CST December 12, 2017 in News
COLUMBIA - Missouri has entered in a new foster care study that will look at foster parent recruitment and retention.... More >>
18 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 6:51:00 PM CST December 12, 2017 in News
AUDRAIN COUNTY - A criminal investigation was underway Tuesday after a man's death and a vehicle fire. Foul play was... More >>
20 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 5:08:00 PM CST December 12, 2017 in News
JEFFERSON CITY - The 2018 Jefferson City council elections only have one contested seat: 5th Ward Council member. Incumbent... More >>
20 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 4:41:00 PM CST December 12, 2017 in News
COLUMBIA - Cover Missouri, a coalition promoting sign ups for the Affordable Care Act, held an open-enrollment event at the... More >>
20 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 4:41:00 PM CST December 12, 2017 in News
COLUMBIA - Police are still investigating the death of Augustus Roberts, the man found dead at a home in the... More >>
21 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 3:46:00 PM CST December 12, 2017 in News
COLUMBIA - The Truman VA’s Intensive Care Unit (ICU) went live with a new Tele-ICU technology on Tuesday. Tele-ICU... More >>
21 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 3:46:00 PM CST December 12, 2017 in Continuous News
COLUMBIA - Troopers arrested a man on Tuesday after a high-speed chase which started south of Ashland and ended in... More >>
21 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 3:38:00 PM CST December 12, 2017 in News
VERSAILLES - Prosecutors filed charges against three employees of the Morgan County Jail on Monday, including a nurse accused of... More >>
22 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 2:37:00 PM CST December 12, 2017 in News
COLUMBIA - Missouri has become the 34th state, in addition to two territories, to accept a nationwide public safety network.... More >>
22 hours ago Tuesday, December 12 2017 Dec 12, 2017 Tuesday, December 12, 2017 2:35:00 PM CST December 12, 2017 in News
Columbia, MO
Broken Clouds 53°
1pm 56°
2pm 56°
3pm 56°
4pm 54°

Select a station to view its upcoming schedule:

Coming Up Next

1:00p
Days of Our Lives
2:00p
The Dr. Oz Show
3:00p
Dr. Phil
1:00p
Maury
2:00p
Maury
3:00p
The Robert Irvine Show

Tonight's Schedule

7:00p
The Wall
8:00p
Golden Globe 75th Anniversary Special
7:00p
Riverdale
8:00p
Dynasty
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld