DIX HILLS - The interest rates on some popular student loans may soon double, a possible economic dilemma for college students that Rep. Steve Israel (D-Dix Hills) is trying to stay ahead of.
Interest on the federally subsidized Stafford Loan is set to jump from 3.4% to 6.8% this summer. Israel is co-sponsoring the Student Loan Relief Act of 2013, a bill in an effort to stave off the hikes. Israel’s bill would keep rates down for two more years.
“The clock is ticking and it is a time bomb on college affordability,” says Israel.
Israel’s bill would cost taxpayers $7 billion, but the congressman says the investment is worth it.
“We understand that we have to lower our debt, and we've supported spending cuts, but this is a matter of priorities,” he says.
Israel says he'll be asking Congress Monday to back his bill on the House floor.