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>>ANCHOR: Interest rates on student loans are set to increase significantly this summer
College students could see their educational expenses grow drastically starting in July.
Rates for Federally Subsidized Stafford Loans will double to nearly 7 percent. The question
is how will that impact local students? 13WHAM's Evan White was at RIT earlier to find out.
>>REPORTER: Doug, there are nearly 7 million students who could be affected should the
rates rise. That doesn't even take into account those who apply for loans in future years.
Quentin Pedraza is one of roughly 8,000 RIT students who are receiving Stafford loans.
>>QUENTIN PEDRAZA: I wouldn't be able to go to school without them.
>>REPORTER: He alone will end up paying back lenders like Uncle Sam in a couple of years
when he graduates.
>>QUENTIN PEDRAZA: I've got to worry about school right now. That's down the line. I
don't think about it too much.
REPORTER: Subsidized Stafford Loans will double, rising from 3.4 percent to 6.8 percent July
1. According to a public interest research group, students borrowing $23,000 in Stafford
loans would pay $5,000 over a decade should rates double.
SEN. SCHUMER: I am putting my shoulder behind legislation that would block the rate increase.
>>REPORTER: The House bill introduced in January will extend the lower rate beyond this year.
Letting rates rise would less the cost to taxpayers, but Schumer claims that's irrelevant
because this won't cost more money.
>>SEN. SCHUMER: We're not going to make increase to the deficit here, so it won't hurt the
taxpayers one nickel. We're going to close some loopholes. Maybe they should be for corporate
jets. Maybe they should be for some of these other examples where people of very high income
don't pay much in terms of taxes.
>>REPORTER: For Quentin Pedraza, higher rates mean a tougher go of it once he leaves school.
>>QUENTIN PEDRAZA: Some things would probably have to be pushed back, maybe starting a family--and
it would be more important to find a job quickly.
>>REPORTER: The Consumer Financial Protection Bureau says the average student graduates
with about $25,000 in student loan debt. Evan White, 13WHAM News.