KDLT Home KDLT on Facebook KDLT on Twitter Get the KDLT iPhone App Get the KDLT Android App

Student Loan Rates Set To Double Monday

Bookmark and Share

If Congress doesn't act fast, on Monday, interest rates on some federal student loans are set to double. The increase would have an effect on as many as 7 million college students.

The 37 million Americans who are still paying off existing loans would not be affected. It's those students who plan to take out a loan or renew loans after July 1st, who may have to pay the price.

Michelle Swenson of Sioux City, Neb. says attending the University of Sioux Falls has become a family tradition. Her sister Stephanie just graduated from USF and her other sister Casandra is going to be junior. As for Michelle, she will start classes at the University this fall.

Michelle said, "I just signed up for classes today (Friday)."

She did it just in time.

Michelle said, "There's three different loans that I got, like the Stafford and the Perkins loans, so those I will have to start paying those off a year after I finish college."

Interest rates on federal subsidized Stafford loans are set to double from 3.4 to 6.8 percent. A rate that would have cost Michelle a great deal of money.

Michelle said, "We're not talking hundreds, it's thousands of dollars you have to pay."

It's all because of a standoff on Capitol Hill. The Republican controlled House has passed student loan legislation in May. The plan calls for lower rates, but adjustable rates, that would fluctuate with the market.

Republican Rep. Eric Cantor of Virginia said, "Students of this country have a right to quality education and they shouldn't be burdened by ever spiraling interest rates on their student loan."

The democrats, who control the Senate, say the plan is worse than doing nothing at all. They say at least the 6.8 percent would be a fixed rate.

Democratic Representative Joe Courtney of Connecticut said, "... a bill that will put kids into a variable rate system that we know over time will be higher than 6.8 percent."

Regardless of the rates, and the rising cost of going to college, Michelle says she's determined to follow in her sister's foot steps.

"It's expensive, you have to be committed," said Michelle.

As of Friday, there were not enough votes on either side in the Senate.

Congress can still pass legislation stopping the increase after the July 1 deadline. Until then, it's creating a lot of uncertainty for borrowers.
< Prev Story Back To Top Next Story >

Hurricane Leaves Pierre Mayor Stuck In Mexico

The mayor of Pierre is one of the thousands of stranded tourists in the ...

Criticism Mounting For Vikings, Adrian Peterson

For as long as he's been in the NFL, Adrian Peterson has been one of the ...

Committee Gives Final OK To Rest Stop Rule Changes

A South Dakota panel has approved rule changes in multiple state ...

Lakota Man Wants Name Of Harney Peak Changed  Sep. 16

Teen Injured In SF Car Vs. Moped Accident  Sep. 16

$2.5M Donation To Fund Northern State Theater  Sep. 16

McCrory Gardens Hosts Vegetable Harvesting Program  Sep. 16

Workshop To Focus On Mountain Pine Beetle Handling  Sep. 16

South Dakota High School Students Earn Dual Credit  Sep. 16

The Daily Scoop: 9-16-2014  story with video  Sep. 16

Over 50 Homes Featured In 'Parade Of Homes'  story with video  Sep. 16

Clerical Error Delays 4th Tea Bond Vote   story with video  Sep. 15

Radisson Suspends Vikings Sponsorship  Sep. 15

SD Gets $1.2M For Unemployment Insurance Programs  Sep. 15

Parents Learn About Social Media  Sep. 15

SD Inmate's Death Ruled A Homicide  story with video  Sep. 15

Discipline Vs. Child Abuse: Where's The Line?  story with video  Sep. 15

South Dakota Teen Loses Her Battle With Cancer   story with video  Sep. 15

SD Board Adopts New Physical Education Standards  Sep. 15

Keystone XL Operator Asks For PUC Recertification  Sep. 15

KDLT News Archive

South Dakota Teen Loses Her Battle With Cancer   story with video

A South Dakota community is mourning the loss of one of ...

SD Prison Inmate Death Ruled A Homicide

A death certificate filed with the Minnehaha County ...

Police Find Missing Sioux Falls Teen

Sioux Falls Police say they found a teenage girl who had been ...

SD Inmate's Death Ruled A Homicide  story with video  Sep. 15

Teen Injured In SF Car Vs. Moped Accident  Sep. 16

SF Officer Injured In Motorcycle Accident Released From Hospital  Sep. 15

Radisson Suspends Vikings Sponsorship  Sep. 15

Slice Of Black Hills National Forest Being Sold  Sep. 15

KDLT News Archive

Grand Jury To Weigh Case Of NASCAR's Tony Stewart

A grand jury will decide whether NASCAR driver Tony Stewart will be charged in ...

Roosevelt bats sweep Mitchell   story with video

The top-ranked Roosevelt softball team swept 2 from Mitchell Monday night at Sherman ...

Vining, Lincoln lead Boys City Golf after 36  story with video

Tommy Vining shot a second round 71 at Willow Run to take a 5-shot lead over ...

Lundquist Passing Life & Roncalli's Tests  story with video  Sep. 15

Vikings statement on Adrian Peterson  Sep. 15

Vikings Reinstate Peterson After Abuse Charge  Sep. 15

Parsley's Pick Six Leads Northern To Victory  story with video  Sep. 14

Gridiron Greatness: September 14th, 2014  story with video  Sep. 14

KDLT Sports Stories
Back To Top