Students Worry Interest Rate Rise Will Hurt Future Prospects

The interest rate on new student loans are doubling Monday to 6.8 percent.

student library

Photo: Z. Smith Reynolds Library (flickr)

The student loan interest rate increase only applies to new loans.

Interest rates on new student loans are doubling Monday, and that is worrying some Indiana students.

The U.S. Senate broke for the July Fourth recess without approving legislation that would have kept interest rates at 3.4 percent. Lawmakers could still approve a bill that would retroactively lower the rates, and old student loan rates will not increase.

Students at IUPUI say with the tight job market, the last thing they need are higher expenses upon graduation.

“We’re not going to be able to be entrepreneurs,” IUPUI dental student Ryan Baker says. “We’re not going to be able to pursue our dreams unless there’s some resolution found for this unfortunate debt burden we’ve all had to assume just to get an education.”

Others fear they will not be able to make the payments.

“I’m a single parent so I don’t have the money to pay double. I mean who’s going to help me pay it back?” says IUPUI student Katherine Rhoades, who is also a veteran.

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