Student Loan Interest Rate Set to Double in Four Days, Hochul Urges House and Senate Leaders to Act Immediately to Prevent Increase

Press Release

Today, Representative Kathy Hochul (NY-26) continued to urge House and Senate leadership to develop legislation to prevent the interest rate on Federal Stafford Direct student loans from doubling in four days. If Congress does not act, the interest rate will double from 3.4 percent to 6.8 percent on July 1.

"In today's economy it is essential that we continue to invest in training and education for our young people. Keeping student loan interest rates low helps ensure that a college education is affordable for anyone who seeks it. However, the deadline to extend the 3.4 percent interest rate for federal Stafford Direct loans is fast approaching," said Rep. Hochul. "I continue to urge both House and Senate leaders to work together and act now to prevent the interest rate from doubling."

Recently, Rep. Hochul has held roundtable discussions with college students and administrators at the University of Rochester and Daemen College to hear their concerns and discuss the burden increased debt will have on students and their families.

"Over the last few months I have heard from students across Western New York who are distressed that an interest rate hike would not only put a higher education out of reach, but result in a crippling financial burden. A student I spoke to at Daemen College, a veteran, said the interest rate increase will add an additional $10,000 to his current student loan debt. A student at the University of Rochester said he cannot go to grad school if faced with additional debt because he will need to work to keep up with the payments. Unconscionably, the uncertainty these students face are not uncommon. Congress must act to ensure student loan interest rates do not double and make certain our young people are not further hindered by unwarranted debt," Hochul added.

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