Schumer wants to delay interest rate hike on student loans

April 22, 2012 5:42:22 PM PDT
One New York lawmaker is pushing legislation he says will help keep college costs down for millions of students.

The bill would delay an interest rate hike set to take effect on July 1 for federally-subsidized Stafford loans.

Unless Congress intervenes, the rate will double from 3.4 to 6.8 percent.

Senator Charles Schumer says that could cost students up to an additional $3800 over a 10-year repayment period.

""That's going to cost these young people who are our future, they're the cream of our society in so many ways, it's going to cost them a fortune," said Schumer.

"The burden is enormous."

Schumer is pushing to make the lower interest rate permanent.

8 million undergraduates nationwide currently receive Stafford loans.

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