Jersey Higher Ed Leaders Worried About Looming Student Loan Interest Rate Spike
There is growing concern – on college campuses in Jersey and across the country – about the possibility that student loan rates could double this summer.
If Congress fails to act, the interest rate for federal loans – used by more than 7 million students – will jump from 3-point-4 to 6-point-8 percent on July first.
Dr. Barbara Gitenstein, President of The College of New Jersey is worried.
She says if the higher rate goes through, “I can see our students having to make very difficult decisions and drop out of school, which would be just awful…if these students cannot finish their degrees and cannot join the workforce and cannot start paying taxes, we’re going to have a huge, intensified economic crisis for the country.”
So far, republicans and democrats in Congress have not been able to agree on a plan to stop the dramatic increase from occurring.