Florida students face rising loan costs, interest rates rise

The student loan crisis is about to get worse for millions of students across the country and here in Florida. The cost to borrow money is increasing. “It’s hard, especially paying for it myself,” said Alyssa Acosta, a student at Valencia College. Alyssa Acosta borrows $30,000 to get a degree in Valencia and admits it’s a financial struggle. “Even working full time, it’s hard for the school to do that, so I have to take out student loans. I have no other choice,” Acosta said. Students who borrow money to pay for college, like those attending UCF, will see those costs increase even more this summer as the Federal Reserve continues to raise interest rates. An undergraduate now paying 3.73% interest will pay nearly 5% on money borrowed after July 1. Graduate students paying 5.28% now will see that rate increase to over 6.5%. For undergraduates, $10,000 borrowed this school year will cost you about $11,996 to repay. After July, this will increase to $12,772, an increase of $726. “It would be for those in financial need,” said U.S. Representative Darren Soto of Kissimmee. Soto says he expects President Joe Biden to extend the pandemic pause on loan repayments beyond August and forgive up to $10,000 in debt, depending on income. Soto says student debt should have been addressed in the $4.5 trillion in COVID-19 relief payments to businesses, workers and mortgage holders. “And with the huge student loan crisis among Millennials and Gen Z struggling to buy homes and start families, this is going to be a key boost for them,” Soto said. “I don’t know if this is going to be successful,” said U.S. Representative Michael Waltz of St. Augustine Beach. Waltz says it’s unfair for students who have paid off their student loans and those who have never attended college to bear the burden of student loan debt. pay off another group’s debts,” Waltz said. “I frankly think it’s a political gimmick in an election year,” Waltz said. Currently, 45 million Americans are struggling with nearly $1.8 trillion in student loan debt. Both local lawmakers agree it’s time to tackle soaring tuition fees, which have gone up by more than 120% over the past two decades.

The student loan crisis is about to get worse for millions of students across the country and here in Florida.

The cost to borrow money is increasing.

“It’s hard, especially to pay myself,” said Alyssa Acosta, a student at Valencia College.

Alyssa Acosta borrows $30,000 to get a degree in Valencia and admits it’s a financial struggle.

“Even working full time, it’s hard with school to do that, so I have to take out student loans. I have no other choice,” Acosta said.

Students who borrow money to pay for college, like those attending UCF, will see those costs rise even further this summer as the Federal Reserve continues to raise interest rates.

An undergraduate student paying 3.73% interest will now pay nearly 5% on money borrowed after July 1.

Graduate students who are now paying 5.28% will see that rate increase to over 6.5%.

For undergraduates, $10,000 borrowed this school year will cost you about $11,996 to repay.

After July, this will increase to $12,772, an increase of $726.

“It would be for those in financial need,” said U.S. Representative Darren Soto of Kissimmee.

Soto says he expects President Joe Biden to extend the pandemic pause on loan repayments beyond August and forgive up to $10,000 in debt, depending on income.

Soto says student debt should have been addressed in the $4.5 trillion in COVID-19 relief payments to businesses, workers and mortgage holders.

“And with the huge student loan crisis among Millennials and Gen Z struggling to buy homes and start families, this is going to be a key boost for them,” Soto said.

“I don’t know if this is going to be successful,” said U.S. Representative Michael Waltz of St. Augustine Beach.

Waltz considers it unfair for students who have paid off their student loans and those who have never attended college to bear the burden of student debt.

“You just erased it. You’re just saying one group of American taxpayers’ money is going to pay off another group’s debts,” Waltz said.

“I frankly think it’s a political gimmick in an election year,” Waltz said.

Currently, 45 million Americans are struggling with nearly $1.8 trillion in student loan debt.

Both local lawmakers agree it’s time to tackle soaring tuition fees, which have risen more than 120% over the past two decades.