Stafford loan interest rates could double
Rate would jump to 6.8%
JACKSONVIILE, Fla. – Unless Congress passes an extension, federal Stafford loans for college students could double this summer.
The loans, which are targeted toward lower and middle class students, currently have an interest rate of 3.4 percent.
But if Congress fails to pass an extension, that rate would increase to 6.8 percent.
The change would cost an average of $2,800 for students who are paying off the loans.
"That'd be pretty bad. A lot of students wouldn't choose to accept loans and probably not go to school," said Tahir Subasse, a University of North Florida Student.
"I have a lot of friends in debt, I'm lucky, but unfortunately for them they'll be stuck with loans until after graduate, if they find jobs," he added.
The Obama administration is urging lawmakers to extend the current interest rate another year before the July 1st deadline.
Copyright 2012 by News4Jax.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.