Central Texas College Advising Students To Wait On Stafford Loans

With interest rates for new subsidized Stafford loans doubling as of Monday, area schools are advising students to wait and do extra research before signing up for college loans.

Interest rates on Stafford loans, offered to undergraduates who meet certain financial need standards, increased from 3.4 percent to 6.8 percent after Congress allowed a Monday deadline on loan legislation to pass. Central Texas College advisors hope Congress will address the issue when lawmakers return from the 4th of July recess. If Congress is unable to reach an agreement before the August recess, increased interest rates on Stafford loans will remain in place, adding around $1,000 in interest over the life of many loans.

CTC advisors recommend students take a wait-and-see approach to Stafford loans and thoroughly research the pros and cons of financial assistance.