Student Loan Interest Rates Spike - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Student Loan Interest Rates Spike

LANSING, Mich. (WLNS)- Students heading to class this fall now face hefty interest rates, if they plan on taking out certain subsidized student loans.

Senator Stabenow, who sponsored a bill in hopes of stopping student interest rates from doubling says, "this is an area where our government should not be making a profit off of the backs of students. Period".

Time's up for congress, but it's students feeling the burn.

MSU senior Nick Farris said "anything I earn will have to go back towards paying off loans...I already work full time as a student and even so it won't be enough".

Farris, like seven and a half million students across the country, woke up to find out student loan interest rates doubled after congress failed to reach a deal.

Now, with subsidized stafford student loan rates reaching 6.8%, the average student stands to tack on an extra $2,600 to their loan.

The increase plans to make 51 billion dollars off students, just this year.

Tuition hikes throughout the state average three and a half percent, with MSU standing nearly two percent higher than they were last year. Tag on room and board and books and students are left buried in debt.

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