Students face higher interest rates on federal loans
FLINT (WJRT) -
(07/08/14) - If you're looking to take out a federal student loan, you're facing a higher interest rate than before.
All student loans offered by the federal government rose last week - and local students are trying even harder to make ends meet.
We caught up with students at UM-Flint, Tuesday. They were disappointed when we told them any new loans are going to cost even more.
"When you just told me that, I said, 'Oh no, that's another thing we have to worry about," said Kyle Manley.
Manley will graduate soon from UM-Flint and plans to work toward a masters degree out of state. He's already got a pile of student loan debt and grad school will only make that worse.
"I have to get a good job to pay for these loans. They're always going to be with me," he said.
The pressure's on for students like Manley.
Undergrad stafford loans rose from 3.86 to 4.66 percent and graduate stafford loans are now at 6.21 percent, up from 5.41.
Shawn Griffin is a loan officer with UM-flint. She explains that the bipartisan student loan certainty act of 2013 calls for loans to be adjusted according to the treasury bill - instead of being set by law.
"Because of that, the rates aren't that bad," she said. "They could've been a lot worse."
For students, any kind of increase sounds like bad news.