Students face billions in added repayment costs if interest rates double
WASHINGTON – Democrats on the House Education and the Workforce Committee today released new data showing the additional costs that students will incur if interest rates on need-based student loans increase from 3.4 percent to 6.8 percent this summer.
More than 7 million students will incur an additional $6.3 billion in repayment costs for the 2012 – 2013 academic school year if student loan interest rates double on July 1. Despite calls from President Obama, Congressional Democrats and students across the country to keep interest rates low, House Republicans have so far not taken any action.
In 2007, the Democratic Congress successfully cut these interest rates in half to provide relief to students from high interest rates. For a state-by-state breakdown on the extra costs students will pay if student loan interest rates double, click here.