Students at UCF are uneasy that the interest rates on their loans are set to double this July.
“I’ll need a lot of loans to finish my bachelor’s degree and go on to med school, so an increase in interest rates would have a huge impact on me. With higher interest rates, I’ll eventually be paying back much, much more than I received and I think that’s unfair,” UCF Student Monica Arroyave said.
According to the current plan, interest rates on subsidized student loans taken out in the upcoming academic year will double from 3.4% to 6.8% on July 1st. Interest rates are high already, so why are students continuing to take out loans for education?
“I lost bright futures and financial aid didn’t cover the cost of tuition, so taking out loans was one of the only viable ways to pay for my education,” said Keith Gonzalez, a former UCF student.
For a number of students, loans are the only option they have if they want to further their education and get a college degree. However, Gonzalez thinks an increase in interest rates would even discourage people from going to school.
Those who do use loans to go to school, despite rising interest rates, are wary of their decision.
“If they increase interest rates it would make me not want to take out any loans at all. It’s stressful to think that if I need more help with school that I’m going to have to make sacrifices in the long run; hopefully it’ll all be worth it,” UCF student Solange Hernandez said.
President Obama has put forth a budget plan that would keep student loan interest rates low in the nation’s current economy. However, opposition from Congress has halted the plan, and interest rates will double on new loans if Obama’s budget plan is not put into action.
Regardless, students continue to use whatever means necessary to invest in their education in hopes that times will improve.
“I don’t know if it was a good or bad choice to take out loans, but I needed them to pay for classes so I guess it was the right choice. I hope I can pay them off once I graduate and get a decent-paying job,” said UCF student Ericka Moore.
