Student Loan Interest Rates Could Double July 1

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BOWLING GREEN, Ky. (WBKO) - With student loan interest rates set to double July 1 college bound seniors remain on edge.

"A little stressed because I know that if I have to take out a loan I am going to have to pay a little more at the end, or a lot more," says Bowling Green High School Senior Catarina Soares.

The increase is on subsidized loans.

Currently students can take out a maximum $5,500 a year at 3.4%. Over 4 years that's an interest of $4,000 to $5,000.

If rates double to 6.8% students could pay between $8,400 and $10,500.

The added cost has high school seniors like Soares crunching the numbers.

"That's where I am right now trying to figure out how to get the best deal and the best money and the best education," says Soares.

Guidance Counselor Karen Carter Swiney says a rise in interest rates will add another burden to students seeking higher education.

"It's very concerning because increasingly we know that our students have to have some type of training after they graduate from high school," says Swiney.

To save a little money, and still compete in the workforce, some students are looking at alternatives.

"I know my students several of them are looking into technical college you know to maybe do the first couple years of technical college so they don't have to borrow as much money," says Swiney.

But Swiney says when it comes to paying for any college it's best for students and their families to be knowledgeable.

"When they get their package really look at how much of this is a subsidized loan and how much of this is an unsubsidized loan and just don't accept everything," says Swiney.

Educators say the increase could all be avoided if action is taken by congress before July.

If action is not taken, and rates do increase July 1, they will not impact students currently in college who have loans.

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