More than seven million students are facing the prospect of doubled student loan interest from this Summer – costing them an extra $1,000 in interest on every yearly loan they go on to take.

After being reduced from 2008 to 2011 to a record low level of 3.4% interest, the rate on government subsidized Stafford loans is due to double back up to 6.8% on July 1

For new students taking out yearly loans it will add at least $4,000 to the average $26,600 debt they owe to the government after graduating.

The increase was due to go ahead last Summer but was delayed by Congress because of widespread opposition from hard-up families and students paying for a college education .

Without the impetus of an election, many now fear the increase will be approved to go ahead this summer as planned, and shouldn’t be allowed.

 

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