Student loan interest rates double - WDAM-TV 7-News, Weather, Sports-Hattiesburg, MS

Student loan interest rates double

The cost of going to college just got more expensive. Not only are tuition rates going up nationwide, but now the interest rates on most student loans are rising.

Interest rates for new Stafford loans are increasing from 3.4% interest to 6.8% interest, and Toby Barker, local state representative whose district includes USM, is not happy about it.

Student loans issued before July 1 keep the rate they originally came with; however, students borrowing after July 1 are expected to fork up double the amount college grads pay back now.

"The house passed a bill that would tie the interest rates long term to market rates, which is something the president actually went along with, as well."

But Senate Democrats disagreed, and the two have not reached an agreement. Barker says state appropriations have changed since he entered college 13 years ago.

Barker expresses concern for the livelihood of future college grads.

"They come out of school in a tough job market saddled with tens of thousands, if not more, student debt, and that does not set our future generations up for success," Barker said.

He also points out the dysfunctional political culture in Washington, and that an agreement must be made between both sides.

"Until something changes, you're going to see problems like this and it's our students who have to pay the price," Barker said.

The director of financial aide at USM offers a piece of advice for students who will be affected by this change.

"They're going to have to be more conservative and wise with their borrowing because it will increase their payments once they go into repayment,"said David Williamson, director of financial aide at USM.

He also notes that students should seek advice from financial aide counselors before taking out loans.

 

  • Local NewsLOCALMore>>

  • Jones County escapee turns himself in

    Jones County escapee turns himself in

    Sunday, August 13 2017 2:41 PM EDT2017-08-13 18:41:00 GMT

    A Jones County escapee is back in custody after walking off a work detail Thursday. 

    More >>

    A Jones County escapee is back in custody after walking off a work detail Thursday. 

    More >>
  • Kittrell, Wayne Academy looking to gain more attention

    Kittrell, Wayne Academy looking to gain more attention

    Wednesday, August 16 2017 10:44 PM EDT2017-08-17 02:44:25 GMT
    Markus KittrellMarkus Kittrell
    Markus Kittrell is well aware when people speak of Wayne County football, the assumption is the conversation will be of the public school War Eagles. Kitrell and his teammates would like to change that a bit this fall. “When you say Wayne County, everybody knows Wayne County High School, but it’s time for us to put it out there about Wayne Academy, where everybody will know about us,” said Kittrell, a 6-foot-4, 300-pound, two-way lineman for the Jaguars. Wayne Aca...More >>
    Markus Kittrell is well aware when people speak of Wayne County football, the assumption is the conversation will be of the public school War Eagles. Kitrell and his teammates would like to change that a bit this fall. “When you say Wayne County, everybody knows Wayne County High School, but it’s time for us to put it out there about Wayne Academy, where everybody will know about us,” said Kittrell, a 6-foot-4, 300-pound, two-way lineman for the Jaguars. Wayne Aca...More >>
  • PCS, West Marion to square off in season-opening rematch

    PCS, West Marion to square off in season-opening rematch

    Wednesday, August 16 2017 10:01 PM EDT2017-08-17 02:01:27 GMT
    Source: WDAMSource: WDAM
    For a second consecutive football season, West Marion High School and Presbyterian Christian School will square off in the season-opening game for each school. But neither team knows quite what to expect from not only the team across the field but the one arrayed along its own sideline. PCS welcomes West Marion at 7 p.m. Thursday, one of two area prep games set a day before a near full, inaugural slate of high school games. Stringer High School will visit Bay Springs High Schoo...More >>
    For a second consecutive football season, West Marion High School and Presbyterian Christian School will square off in the season-opening game for each school. But neither team knows quite what to expect from not only the team across the field but the one arrayed along its own sideline. PCS welcomes West Marion at 7 p.m. Thursday, one of two area prep games set a day before a near full, inaugural slate of high school games. Stringer High School will visit Bay Springs High Schoo...More >>
Powered by Frankly