Senator Schumer Pushes to Keep Subsidized Loan Rates Low
By: Caroline Tucker
Updated: April 12, 2012
In July, the interest rates for federally subsidized school loans are set to double.
US Senator Chuck Schumer says he's backing legislation to prevent that.
He made a stop at RIT on Wednesday.
At RIT, 8,000 undergraduate students used financial aid to pay for school.
Many students are now worried what a hike in the interest rate of federally subsidized loans could mean for them.
Senator Chuck Schumer is outraged by the end of 3.4 percent interest rate on federally subsidized college loans.
In July it's set to go up to pre-2007 rates at 6.8 percent.
He's backing legislation to keep the interest rate at current levels.
"It is outrageous to make this kids pay 6.8 percent when interest rates are 2 and 3 percent. But that's what will happen if nothing is done," said Sen. Chuck Schumer, (D) New York.
It will affect any new loans students take out.
Both Senator Schumer and students say rates need to stay low to make college possible.
"When students are taking out loans these interests rates are so unreliable looking at what parents make and 99-percent of the time are not paying for these loans it's going to be students when they graduate," said Chad Rossi, an RIT student.
Senator Schumer says this legislation would extend the 3.4 percent rate for 1 year but in the fall he wants to try to make it permanent.
