UT students have mixed reactions to student loan deal

UT students have mixed reactions to student loan deal

Posted:
While the class of 2015 may be dodging the rates this time, the interest rates could still potentially come back to haunt them in graduate school. While the class of 2015 may be dodging the rates this time, the interest rates could still potentially come back to haunt them in graduate school.
"It obviously affects my future a lot and what I will have to pay six months after graduation," said UT senior Ashley Kinser. "It obviously affects my future a lot and what I will have to pay six months after graduation," said UT senior Ashley Kinser.

By DREW GARDNER
6 News Reporter

KNOXVILLE (WATE) - As the fall semester approached, so did the threat of higher interest rates for many students. A new deal in the U.S. Senate, however, has apparently averted the rate spike, at least for now.

Rates on subsidized Stafford loans jumped at the start of the month from 3.4 percent to 6.8 percent after the Senate failed to reach an agreement on the student loan program.

Then a bipartisan group of Senate negotiators reached a deal Wednesday to hold interest rates steady through 2015.

"It obviously affects my future a lot and what I will have to pay six months after graduation," said UT senior Ashley Kinser. "It's really disheartening to realize they have almost doubled, and plus with tuition going up every year since I've been at UT."

The news isn't all good for tuition loans. After 2015 interest rates undergraduates could face may jump as high as 8.25 percent. Graduate students would pay 9.5 percent and parents would pay 10.5 percent.

With this deal senior Ashley Kinser says she is lucky enough to escape the increase, but can't help but think about future students.   

"They are working to make their lives better. And they are in pursuit of a degree realizing that in four years they'll have a great job and be able to pay these back, when the truth is it's going to be a mountainous number," said Kinser.

While the class of 2015 may be dodging the rates this time, the interest rates could still potentially come back to haunt them in graduate school.

"I think having that higher education will be better in the long run," said Kinser. "I just hope to get a good paying job and pay them back as fast as I can."

In the meantime Kinser plans to do her best to focus on her studies no matter what happens.

The tentative deal is estimated to reduce the deficit by $715 million over the next decade.

The Senate was expected to vote on the deal as early as Thursday. 

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