New law keeps student loan rates low

A temporary bill signed into law will keep student loan rates from skyrocketing.

Under the bill, interest rates will stay at 3.4% for standard unsubsidized loans. The interest rate would’ve doubled in July if the law wasn’t passed. The new law will stay in effect until next summer.

If the loan rate doubled over the summer, Director of Financial Aid Jen Sassman says that students would still be taking out loans at the same rate as in the past.

“It is still the most beneficial loan for students”, says Sassman. “If students need loans to pay their balance here (at Wartburg), I don’t know if that law particularly increases or decreases the amount of loans”.

The financial aid office speaks on behalf of the students and advocates to students that if they want this law extended past next July, letting the government know is the best course of action.

“Write your federal congressman, and let them know how important it is to keep that federal interest rate low”, says Sassman.

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