BOWLING GREEN, Ky. (WBKO) - Interest rates on Subsidized Stafford Loans for college students remain at 6.8%. That's double the rate compared to this time last year. Gary Ransdell, President of Western Kentucky University, says he is keeping a close eye on Washington.
"It does concern me and I hope they do find a way to get them back to the previous level as of a couple weeks ago," says Ransdell.
Senators came close last week to setting a deal on interest rates, but were concerned by a $22 billion price tag. Ransdell says his worry remains with students, many of which may be unaware they could pay more.
"That's not a problem for us right now because I don't think with many students it has registered with them quite yet what that will mean over the course of their adult life when they have to repay those loans," says Ransdell.
If rates were back to 3.4% a $5,000 loan over 5 years would cost $444.13 in interest, but under the current rate that interest would rise to $912.15.
"It makes it so much harder to actually go to school. We go to school to get ahead and now having to pay double the interest rates on something that is already high it will make it that much harder," says student Katie Sublett.
Sublett says the costs for college continue to skyrocket beyond just student loans.
"Not only do you pay for your tuition and your class work you also have to pay for books, computers and any kind of other equipment you might need so it gets kind of expensive," says Sublett.
If senators take action soon lower rates could be back for the new school year.