Community Corner
Maryland College Students Could Face Millions in Extra Loan Burden
An expected increase in federal loan interest rates goes into effect July 1.
More than 100,000 Maryland college students face a big jump in their debt on subsidized federal loans if a hike in interest rates set for July 1 goes into effect, according to the Washington Business Journal.
Once a program that has kept interest rates on subsidized federal student loans low expires, rates are scheduled to double from 3.4 percent to 6.8 percent.
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A total of 105,027 Maryland students who qualify based on financial need have subsidized federal student loans, known as Stafford loans, according to the journal.
With the average loan debt at about $24,000, students in Maryland would have to pay an additional $95.4 million, or an average $909 more for each student, according to the report, citing figures from Maryland Public Interest Research Group.
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Congress could extend the program to keep the interest rates low -- a move supported by Sen. Barbara Mikulski, D-MD -- but that has yet to happen.
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