Pa. college students urge action on loan rates

PHILADELPHIA (AP) — Pennsylvania college students are urging federal lawmakers to strike a deal that will avert higher interest rates on student loans.

Without a compromise, rates on subsidized Stafford loans will double from 3.4 percent to 6.8 percent on July 1. That will cost borrowers about an extra $1,000 over the life of each loan.

About 394,000 Pennsylvania residents have Stafford loans. The upcoming expiration of a 2007 law will result in higher rates for any loan taken out after July 1.

Many Republican and Democratic senators want to keep the lower rates but disagree how to pay for it. Today, the GOP blocked debate on Democrats’ legislation.

Graduating Temple University senior Jamira Burley says she fears higher rates will discourage aspiring college students.