"Around 7.4 million students will be affected by the rate increase, and each will have to pay an average of $1000 per year in additional interest," said Wright State student Kyle Powell.
Effective July 1, the interest rate of all new Stafford federally subsidized student loans doubled from approximately 3.4 percent to 6.8 percent.
According to a White House press release, the interest rates were set to double last summer, but Congress "took action and passed a bill to extend lower student loan interest rates until July 1, 2013." When the doubling date came around a second time, Congress "failed to take action."
Powell, the President of WSU Democrats, said he is is teaming up with other members of the community to organize opposition to the rate increase, and to express support for certain bills making their way through the legislative process that would reduce interest rates on student loans in various ways.
Associate Director of Raider Connect Iris Mirelez believes the rate increase can be attributed to the economic hardships affecting the country in the last few years.
"I would imagine it's a combination of economic problems and the sheer timing of it, being the end of the fiscal year," said Mirelez. "I think it also has to do with being able to replenish funding when students go to repay their loans so that they're paying enough back into the system," she added.
WSU Student Drew Devereaux expressed dissatisfaction with the decision.
"It couldn't have happened at a worse time, considering the hard economic times," Devereaux said. "They're emphasizing the importance of higher education, to give the illusion of doing something about the ailing economy, at the same time as they are making it more difficult to attend college."
Despite the obvious disadvantages of increased student loan interest rates, Mirelez said she does not believe it will negatively affect WSU enrollment.
"Students who are financially savvy, might choose to go to an institution that may be slightly more affordable [such as WSU] since they now have to pay more interest on the money they borrow," said Mirelez.
