Support To Keep Student Loan Rates Low

07.03.13 | Abby Lutcher

During a visit today at Corning Guthrie Hospital, Schumer said he will support a bill that would avoid an interest rate increase for student loans that could raise the cost of attending college. Schumer says as of yesterday, the interest rates on federally-subsidized Stafford loans will double from 3.4% to 6.8% unless Congress takes action to block the rate increase. In 2007, Congress lowered the rate on Stafford loans, currently held by thousands of students in the Southern Tier. But Schumer says without an extension of the reduced rate, interest rates will double for new students receiving these loans. He tells us with student loan debt and college tuition costs rising, the last thing we should do is pile on these costs. Schumer announced his support for legislation that would extend the 3.4% rate for one year, and urged Congress to take up legislation to make the extension permanent. The government isn’t hiking the rate on any existing loans, only on new ones. Any loans issued before yesterday keep the rate they originally came with. The White House said it expects the Senate to tackle this issue after its recess.