SOUTHFIELD (WWJ) – A U.S. congressman says that without intervention the interest rate on student loans will double. As of July 1, rates are set to go from 3.4 percent to 6.8 percent.
That’s according to Michigan Congressman Sander Levin, D-12, who met with students from all over Metro Detroit Monday at the Southfield Public Library to discuss how they plan to pay off their loans.
One student, who is studying architecture at Lawrence Technological University in the fall, said she is considering changing her major to law to improve her chances of paying off her loans post-graduation.
“I am currently $160,000 in debt,” she said. “I just finished my fourth year and I’ll be a fifth year senior in the fall, so probably about 180,000 when it’s all said and done.”
Levin said the Republicans’ goal in raising the rates is to eliminate funding for the Affordable Care Act, which he said will hurt Michigan residents in the long run.
“Michigan has already received millions of dollars through this fund, and to eliminate it is not a good idea,” he said. “To help education by hurting health needs of people in the state isn’t a good tradeoff.”
Levin said the proposed cut would impact various programs — some of which are trying to control obesity and detect and fight health threats.