Students at the University of Oregon say school is hard enough to pay for and many weren’t planning on having even higher interest rates on their student loans.
Currently, the interest rate for subsidized student loans is 3.4 percent, but on July 1 the rate will double to 6.8 percent. These rates are controlled by Congress and have remained low at 3.4 percent for the past five years.
Around 8,000 University of Oregon students currently have subsidized loans with the government. Students on campus Wednesday say they’re not excited about this increase and don’t really understand why the rates would rise. The financial aid office says it recommends students prioritize paying back these loans early rather than later.
“We encourage students to pay attention to their loan borrowing all the way through school. I mean, start looking at it from the first year. Look at what you’re borrowing for. Use your money for educational expenses,” said Jim Brooks, Student Financial Aid Director.
Some students say they plan to get multiple jobs this summer to help pay off a large portion of their debt. Others say they have a long-term plan for how they’ll pay back their student loans.
These student loan rates will only impact undergraduate students because graduate students are not eligible for subsidized federal loans.