Students still want school loans after interest hike
BATON ROUGE- Millions of students are taking out loans to get through school, despite a recent hike in interest rates for federal assistance.
"I lost TOPS and that doesn't help. Basically I didn't have enough money," says LSU student Dylan Wegmann.
Interest rates will double from 3.4 percent to 6.8 percent on new federally subsidized student loans in July, after Congress failed to reach a deal to keep the rates in place. But the news didn't seem to discourage many News 2 spoke to.
"If I get my degree, I'll be able to have my foot in the door. I'll have the opportunity to increase my income to pay those loans back," says LSU student Calvin Montgomery.
Jay Lyles says he was also banking on high paying jobs when he took out students loans ten years ago, but had a rude awakening.
"When I got out in '04 with my Master's degree, I was really not making that much money. So I had my days when I was concerned about whether or not I had done the right thing," he says.
But while he still has nearly ten more years to go on paying it off, he doesn't seem to regret it.
"Once you get your degree and education something they can't take away from you even if you have trouble with the loans. I certainly know if I had to do it over again I still would've gone to school," he says.
The Senate plans a vote for July 10 that could retroactively lower the rates.