Interest rates on federal student loans could double next month if congress doesn’t step in.
“It seems to be common sense if we want to make an investment in education and investment in the future then this shouldn’t be the burden of the college students,” says ISU student body president, Spencer Hughes.
This same issue came up a year ago but congress voted to extend the lower interest rates.
If congress doesn’t come up with a compromise by July 1st, interest rates on student loans could jump from 3.4 to 6.8 percent.
The increase would only impact students who plan to take out a loan after July 1st.
Heather Doe from the Iowa College Students Aid Commission says those students will definitely feel the impact.
“It’s tough for new graduates who are out there looking for a job and then to think they might have to have an extra 40 dollars a month to cover is very concerning for them,” says Doe.
Analysts say any increase will only contribute to student debt, which nationally has topped 1-trillion dollars.