Schumer announces support for legislation to fight rising interest rates for college loans | News
SCHENECTADY - If you haven't priced a private college education lately, you'd better sit down.
A year at Union College, just one year, will cost about 56-thousand dollars.
"A lot of my friends didn't end up going to schools that they'd like to go to, that they got accepted into, just because they didn't have as much financial aid," said freshman Catherine Kennedy.
Union's Vice President for Financial Aid Matthew Malatesta says about 60 per cent of the school's 22-hundred students receive aid, with scholarships averaging about 30-thousand dollars a year per student. "For every family the conversation about finance and investment and affordability are all huge factors."
The difference between what a family can afford to pay and what students receive in scholarships and work study is made up of students loans, often through the federal government.
It leaves many graduates saddled with tens of thousands of dollars in debt. "I think it should be about 25 thousand dollars," said Union College sophomore Richard Harris. "I think it's a huge number."
The interest rate for the Stafford loans was reduced by Congress from 6.8 per cent starting in 2007. It's now 3.4 per cent but will jump back up to the pre-reduction level unless Congress acts by July.
"Making education more expensive is biting the hand that feeds us," said Senator Schumer. "It's a huge mistake."