JACKSON COUNTY Freshmen year is exciting for most college students, but as they prepare for school this fall they should also expect higher loan interest rates.
Starting tomorrow interest rates on new federal loans will increase. Stemming from legislation by congress that base the rates on the financial market, undergraduate students signing up for loans from July 1st, 2014 to June 30th, 2015 can expect to see rates jump from 3.86 % to 4.66%.
Experts say this increase is just the beginning. For students at Chipola College, this can have lasting effects.
"It would put students more in debt because they have to pay back more money,” said Porsha Barkley. “I think it stresses people out a lot because its people that, you know, years after they graduate they still have to pay back student loans."
On the bright side, as part of the legislation, interest rates will eventually cap at 8.25 % for undergrads, and 9.5 % for graduate students.