Students Worry as Loan Interest Rate Increase Nears

6 years 8 months 2 weeks 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
JEFFERSON CITY — Police arrested three people after a Saturday afternoon robbery led to a car chase, according to a... More >>
1 hour ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 5:46:00 PM CST February 22, 2020 in News
JEFFERSON CITY — Missouri voters legalized medical marijuana in 2018, but some lawmakers are worried about what that could... More >>
2 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 4:53:00 PM CST February 22, 2020 in News
ST. LOUIS (AP) — Missouri may have shed its unwanted image as the meth lab capital of the U.S.,... More >>
2 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 4:21:00 PM CST February 22, 2020 in News
COLUMBIA - Columbia is getting a break from winter weather this weekend and many residents are taking advantage of it.... More >>
2 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 4:21:00 PM CST February 22, 2020 in News
REEDS SPRING, Mo. – Students in the Reeds Spring School District will begin a four-day school week next school... More >>
3 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 4:11:55 PM CST February 22, 2020 in A Brighter Tomorrow
COLUMBIA – Several First Ward neighborhood associations hosted a town hall forum Saturday with city council candidates to discuss housing,... More >>
3 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 4:07:00 PM CST February 22, 2020 in News
Black LGBTQ youth are less likely to receive mental health... More >>
3 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 3:51:00 PM CST February 22, 2020 in A Brighter Tomorrow
COLUMBIA — In an effort to contain the novel coronavirus, the Chinese government has canceled a number of exams this... More >>
4 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 2:56:57 PM CST February 22, 2020 in News
COLUMBIA— A Columbia chiropractic office hosted a seminar to educate and empower women Saturday afternoon. The event was part of... More >>
5 hours ago Saturday, February 22 2020 Feb 22, 2020 Saturday, February 22, 2020 2:13:00 PM CST February 22, 2020 in News
MOBERLY - Moberly police officers responded to a domestic assault at 1028 Sinnock Ave., at 2:48 a.m. Friday, February 21,... More >>
20 hours ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 10:45:00 PM CST February 21, 2020 in News
COLUMBIA - "Honest" and "righteous" are just a couple of words friends used to describe Columbia City Councilman Clyde Ruffin.... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 5:55:00 PM CST February 21, 2020 in News
COLUMBIA - Columbia Water & Light plans to perform water valve repairs at the intersection of North College Avenue and... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 4:57:00 PM CST February 21, 2020 in News
COLUMBIA - Columbia Regional Airport with American Airlines are proposing a new daily nonstop air service to Charlotte, North Carolina... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 4:49:00 PM CST February 21, 2020 in News
COLUMBIA - The Missouri Department of Economic Development awarded $7.3 million to nonprofit's through its Neighborhood Assistance Program this week.... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 4:25:00 PM CST February 21, 2020 in News
COLUMBIA - Columbia Police arrested a Jefferson City man in connection to an armed robbery on Jan. 7 at the... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 4:23:00 PM CST February 21, 2020 in News
WARDSVILLE - Blair Oaks wrestling sent seven qualifiers to the state championship this weekend in Columbia. Among them is senior... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 3:55:00 PM CST February 21, 2020 in Sports
COLUMBIA - The University of Missouri announced a large gift from alumni Friday to support the university's NextGen Precision Health... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 3:02:00 PM CST February 21, 2020 in News
HUNTSVILLE - A Moberly man allegedly ran from Randolph County deputies Thursday after they attempted to stop him for careless... More >>
1 day ago Friday, February 21 2020 Feb 21, 2020 Friday, February 21, 2020 2:49:00 PM CST February 21, 2020 in News
Columbia, MO
Broken Clouds 43°
8pm 43°
9pm 42°
10pm 41°
11pm 40°