Student loan interest rate hike looms

Unless the US Congress enacts new legislation the interest rate on the federal Stafford loan will jump from 3.4% to 6.8% on July 1. Senator Sherrod Brown (D-OH) was on the campus of Owens Community College on Monday to talk with students and administrators. Brown is in favor of Congress enacting legislation to keep the interest rate at 3.4% but he acknowledged that Republicans and Democrats on Capitol Hill differ on how to pay for it. "We've got to do this and pay for it by closing a tax loophole and not by setting up a woman getting a mammogram against a college student who needs financial aid," Sen. Brown said. Senate Republicans want to pay for the rate freeze with funds taken from the new fedseral health care law while Democrats want to pay for it by taxing certain corporations.

According to Senator Brown more than 382,000 students could be affected by the rate hike; 25,000 in Lucas County and 10,000 at Owens Community College.