Student loan interest rates doubleUPDATED 10:29 PM HST Jul 01, 2013Video Transcript
can't come to an agreement over college loans and it will end up costing millions of student -- much more! Interest rates for subsidized student loans has now doubled! KITV4's Paul Drewes has reaction from Hawaii students and schools in tonight's top story. Lindsey Ewing is a new graduate at Hawaii Pacific University, but along with getting her degree she also has a student loan debt of nearly $20,000 - which will take her years to pay off. lindsey@22:51-23:00 "that's the only thing, then I'm done. But it might be ten years or more" Even with that debt -- she's one of the lucky students who only has to pay an interest rate of 3.4% on that borrowed money. Students now taking out new student loans will be charged 6.8% in interest. adam@13:41-13:52 "looking at a standard ten year plan, $4000 more in payments it will make their monthly payments go up" At the University of Hawaii, Spencer Mawhar started racking up student loans during his time in grad school -- he's got more to go and that means more debt to repay for him and his growing family. spencer@12:23-12:32 "As a father, husband with a family it is going to be more difficult with that loan now" Higher rates could cut the number of full-time students, and force others to find alternative ways to pay for college. andrew@6:16-6:22 "I think I will have to bite the bullet here, I will look for more scholarships - things I won't have to pay back but it will definitely give me pause before taking more loans." Not only are some upset over the huge jump in rates -- they're upset over WHO will be paying more. phoner@28:02- "These rates are going up for those who can least afford it. These are subsidized loans going to low-income students and UH Manoa has many of those students" And its not just students who have worried about this big rise in interest rates. adam@14:20-14:31 "definitely we've had some students talk about it - but for a typical undergrad student -- its their parents. Parents are involved in this decision and want to know if we can lock in this lower interest rate -- but we can't" Not only will school be more costly for those with student loans, the higher interest rates will also lower borrowing limits. Which could also reduce the amount of school a student can afford. Yunji.