For students still school, the interest rates for Stafford loans may double July 1. Legislation passed by Congress in 2008 kept Stafford rates at 3.4 percent for the next four years. That expires June 30.
COLUMBIA, S.C. -- Rebecca Johnson works at the University of South Carolina's Moore School of Business. The Irmo woman graduated last week.
She applied for a Stafford Loan her freshman year; after her father lost his job.
"That is when I had to step up and get a job and had to pay for school myself. With the economy how it is, I want to help as much as possible and try to be financially independent."
Like many graduates, Johnson is still paying off her student loans. However, for students still school, the interest rates for Stafford loans may double July 1. Legislation passed by Congress in 2008 kept Stafford rates at 3.4 percent for the next four years. That expires June 30.
If Congress can't find a way to pay for the $6 billion subsidy, the rate will double to 6.8 percent. That would make fall tuition unaffordable for some.
"It's not fair for students when they're working as hard as they can to get and education, to get a job." Johnson said. "Then they come out of college, and they have huge debt enough as it is."
Democrats hope to collect more social security and Medicare payroll taxes from the wealthy; while Republicans want the money to come from preventative programs from the president's healthcare overhaul.
USC Director of Financial Aid Ed Miller said there are more than 12,000 students on campus during the 2010-11 year with Stafford loans, but other options are available to help students in need.
"Some are opting to go to two year schools, even to some of the universities two-year campuses and transfer into Columbia's campuses for their Baccalaureate degree. We're going to try to put them in touch with the most attractive loan option that is available."
Johnson still has about $2,000 to pay off. She hopes lawmakers in Washington know their decision will affect the leaders of tomorrow.
"I've been lucky not to have that much debt. Some of my friends have thousands of dollars in debt already; and they just graduated.
Both parties are expected to reach a deal before the June 30 deadline. Both sides want the support of college age voters in the November election. Miller said students should apply for as many grants and scholarships as possible as an alternative to loans.
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