NORTHAMPTON, Mass. (WWLP) - Student loan rates are twice as high Monday as they were Sunday. The increase passed without any action from Congress.
College students applying for federal subsidized loans will now have to agree to pay an interest rate of 6.8%. The change is expected to affect students who are applying for loans this year. In Massachusetts, that's an estimated 158,000 students.
We spoke to one college graduate who says she's already having a hard time paying back loans at a 3.4% interest rate.
"It's been a process of consolidation and trying to figure it out," said Augustina Warton. "I work in the non-profit sector. So it's been really difficult for me trying to find an income based payment and also a living wage."
Last year, Congress passed a last minute extension that avoided the hike. More people owe student loan debt than they do credit card debt in the country, at more than $1 trillion.