Schumer pushes for extension to keep college loan rate low
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SCHENECTADY, N.Y. -- Interest rates on federally subsidized Stafford Loans are set to increase this summer, and U.S. Senator Chuck Schumer says, that's just not fair.
The senator spoke at Union College in Schenectady on Thursday. He said the interest rate on Federal Direct Stafford Loans will go from 3.4 percent to nearly 7 starting July 1st, unless Congress acts. Congress passed a bill back in 2007 to lower the loan rate. Now, that bill is scheduled to expire.
Schumer said it's important for Congress to pass an extension and make college more affordable for another year.
"It means some people will decide they can't go to college," Schumer said. "It will mean others will decide they can't go to the college they want to go to and deserve to go to. And it will mean those who do go will pay a lot more interest."
The New York State Higher Education Services Corporation estimates the average student who receives four years of subsidized stafford loans would end up paying up to $3,798 more over a 10-year repayment term if the interest rate increases.