Increase In Federal Student Loan Rate Costs Georgia Students $200 Million
Interest rates on federal student loans could double if Congress doesn’t take action by July 1st.
Today consumer advocates, the Georgia Public Interest Research Group released data on how the loan increase could impact Georgia students.WABE’s Rose Scott has more.
Right now it’s 3.4 percent and could double.
The Georgia Public Interest Research Group is urging senators, Johnny Isakson and Saxby Chambliss, to keep the current interest rate.
Rich Williams is a federal higher education advocate with Georgia PIRG.
“In Georgia 55-percent of graduates carry student loan debt with an average of $18,880 dollars per borrower.”
If the federal student loan rate doubles, Williams says that will cost Georgia students 2-hundred million per year.
In turn, Williams says that heavy debt hinders the progress of Georgia graduates and hampers the state’s workforce development:
“Until the economy grows strong again, Congress must help Americans obtain the higher education and training needed to stay competitive by preventing interest rates from increasing…time is running out,” says Williams.
Recent reports indicate student loan debt has passed credit card debt.
That debt has now hit the 1 trillion dollar mark.
The U.S Senate is scheduled to vote on the issue this coming Tuesday.
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