Students Look To Pay Off Loans Sooner After Rates Double - 47 ABC - Delmarva's Choice

Students Look To Pay Off Loans Sooner After Rates Double

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PRINCESS ANNE, Md. - After Monday's lack of a decision from the Senate, some local students are already looking for jobs just to start paying off the rising costs of loans. 

"Hopefully I'll be able to pay [off my student loans]," said Ashley Ewell, a University of Maryland Eastern Shore senior. "Hopefully I'll be able to find a job so I can start paying them. I'm actually trying to start now, since I have a job. So, little by little, trying to put some money towards it."

Interest rates for some federal loans are now double what they were last week after Congress didn't get a deal done to keep them low. Rates will only affect new Subsidized Stafford loans for the upcoming year and not existing Subsidized Stafford loans.  It could cost each student an extra $2,600, affecting nearly a quarter of all federal borrowers.

"I think it's quite concerning," said James Kellam, University of Maryland Eastern Shore financial aid director. "Not only are the fees going up as well as interest rates, but as you know, tuition is going up as well."

The full effects won't be felt immediately, because officials say most students sign their loan documents when they return to campus in the fall. According to reports, lawmakers say they can return the interest rates to 3.4 percent when they return after the July 4th holiday.

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