The Herald Bulletin

Afternoon Update

Local News

July 1, 2013

Subsidized student loan rates set to double

Congress could still extend low interest rates after July 4

ANDERSON, Ind. — There could still be a retroactive fix if Congress acts after the July 4 holiday, but as they stand now, subsidized Stafford loan interest rates are set to double in the fall.

The interest rate on the student loans, accounting for roughly a quarter of all direct federal borrowing, went from 3.4 percent to 6.8 percent Monday with inaction from Congress.

The thought of more debt is a frustrating one for students like Dylan Snell, who'll be taking classes at Ivy Tech Community College in the fall.

Even though Snell, a 2013 graduate of the Anderson Excel Center, will have grants to pay for a significant part of his schooling, he said he's still discouraged by the rate increase.

"If you want to be educated, you should have the opportunity to do so and not be in debt for the rest of your life," he said, adding that one needs a degree beyond high school to be successful in today's economy.

Snell has friends struggling to repay student loans and knows an Anderson University graduate nearly 30 years old who has only paid off half his debt.

Snell said he's already earned college credit for no cost at the Excel Center, but he added that he wants to live comfortably and not worry about stretching his finances to make it day to day.

With the interest rate increase, Congress' Joint Economic Committee estimated the cost passed on to students would be about $2,600 with a four-year degree. The average debt of a four-year college graduate in the United States is already about $26,600, according to the Project on Student Debt.

Student debt has risen significantly to about $1 trillion today, surpassing credit card debt nationwide.

"Awareness is key," said Tammy Tomfohrde, director of financial aid for Ivy Tech's East Central Region.

Text Only
Local News
  • NWS - HB0417 - election forum - 15 Candidates meet in Alexandria

    Several Madison County candidates running for a variety of offices met at Alexandria-Monroe High School Wednesday night to introduce themselves to voters and talk about some issues.

    April 17, 2014 2 Photos

  • NWS - HB0408 - Crash Sperrys 2 Family, friends bid farewell to Jesse Sperry

    The fussing of 10-day-old Autumn Marie Sperry seemed to coincide with the beginning of the funeral service for her father, Jesse Sperry, whose body rested just a few feet away. More than 200 friends and family members gathered at Edgewood Baptist Church this afternoon to pay their respects to Jesse, who was killed April 6 in a traffic accident on Indiana 32.

    April 16, 2014 2 Photos

  • NWS - HB0417 - mother arrest - JC 5.JPG Police: Woman brings handgun to school

    An Anderson woman said she forgot she was carrying a gun Wednesday when she went to St. Mary’s School to meet with a principal and discuss a threat made against her son.

    April 16, 2014 2 Photos

  • AU students giving back to community

    For the past five years Anderson University students have been sprucing up the city through the Operation Foundation program.

    April 16, 2014

  • Anderson collects nearly $67,000 in bad debt

    The city of Anderson collected almost $67,000 in bad debts owed to the four utility departments in March.

    April 17, 2014

  • Local Briefs: April 17 A compilation of news items of local and statewide interest as published in the Thursday edition of The Herald Bulletin.

    April 17, 2014

  • Dog owners invited to Easter egg hunt McCulloch Park will be going to the dogs on Saturday. Residents are invited to join in for the Easter egg hunt specifically for canines and their human companions.

    April 16, 2014

  • Arrest Log: April 17 Arrests made by Madison County law enforcement on Tuesday and Wednesday, based on Madison County Jail records.

    April 16, 2014

  • Arrest Log: April 16 Arrests made by Madison County law enforcement on Monday and Tuesday, based on Madison County Jail records.

    April 16, 2014

  • Former Indy radio personality accused of defrauding family members in Madison County A former Indianapolis radio personality was arrested Monday, suspected of stealing the identities of four Madison County family members over a four-year span.

    April 16, 2014

March Staff Photos

Buy and browse more photos from The Herald Bulletin

More Resources from The Herald Bulletin
Auto Industry Book
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide