User uShare Login | Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.

28° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options



 Winter Storm for November 30, 2015

Snow Outlook

Severe Weather

State Radar

Click here for local closings & delays

Send photos to

Storm Center Update



[0] My Saved Articles
Back to all news


Find local businesses
on the KELO Pages!


Student Loans Wouldn't Go Higher Than 2007

June 25, 2012, 9:58 PM by Ben Dunsmoor

Student Loans Wouldn't Go Higher Than 2007

Subsidized student loans for college students could double by this weekend if Congress doesn't act this week to keep the interest rate at 3.4 percent.

But if Congress allows the interest to go up, the loans won't be any more expensive than they were just five years ago.

"And because that provision was put into place for four years, when it expires now we're facing it automatically going back up to 6.8 percent," Augustana College Financial Aid Director Brenda Murtha said.

Murtha is keeping an eye on Congress this week to see if they reach a deal to leave the interest rate on subsidized student loans at 3.4 percent, or if they'll let the rate return to the level it was at five years ago.

In 2007, Congress passed the College Cost Reduction Act, which gradually stepped down interest rates. The first year the rate dropped to 6.0 percent, then to 5.6 and 4.5 before reaching the low-rate of 3.4 last year. The Act expires July 1 so the interest rate will go up compared to the last few years, but won't go any higher than the traditional rate.

"I don't feel that it should be a deal breaker as far as, 'I'm not going to go to college because this interest rate is going to change,'" Murtha said.

The majority of students don't even qualify for the loans that will be affected; only 30 percent of students receive subsidized loans.

Still, Democrats and Republicans are trying to reach agreement on how to pay for the low-interest loans. Congresswoman Kristi Noem is hopeful something can get worked out.

"A lot of our college students are having difficulty finding work and right now these interest rates should be kept affordable for them and that we not increase them at this time - as long as we pay for them," Noem said.

Democrats and Republicans have been going back and forth on where to find the $6 billion to keep the rates low, but haven't reached an agreement.

The majority of college students qualify for unsubsidized loans. The interest rate on those loans remains at 6.8 percent.


Previous Story

Next Story




View business

You may also like

Board Of Education Member Had Multiple Contracts With State

11/23/2015 6:05 PM

That means in addition to her state salaries at USD and Northern State, Duncan earned an additional $124,000 in contracts from the Department of Educa...

Full Story | Watch
Fired GEAR UP Worker Defends Stacy Phelps

11/24/2015 6:05 PM

When the state pulled its multi-million dollar GEAR UP contract from Mid Central Educational Co-Op in September, all the current GEAR UP workers were ...

Full Story | Watch
Bison Ranch Owner By Turner Gets Permit For Feedlot Addition

11/25/2015 1:35 PM

Stanley County commissioners have approved a feedlot at a bison ranch owned by media mogul Ted Turner.

Full Story
Some Black Friday Deals Are Not Deals

11/23/2015 4:51 PM

Recent research found just because something is called a doorbuster doesn't mean it's significantly discounted.

Full Story
City Of Sioux Falls Buying Homes In Area that Floods

11/24/2015 6:05 PM

Homeowners have the option to voluntarily sell their house if they are concerned about flooding or if they have had problems with flooding. By tearing...

Full Story | Watch