Sen. Charles Schumer announced his support for a bill that would halt student loan interest rate increases on the steps of the Hall of Languages on Monday at noon.

Unless a bill is passed, interest rates on federal Stafford loans will nearly double on July 1, rising from 3.4 percent to 6.8 percent. Stafford loans, offered by the federal government, are given to students based on need and are not expected to be paid back while the student is in college or for a six-month period after. While the student is in college, the federal government pays the loan interest, according to an April 16 press release on Schumer’s website.

Currently, 9,483 Syracuse University students and 965 State University of New York College of Environmental Science and Forestry students have Stafford loans and would be affected by the increase, according to the release.

Flanked by students and officials, Schumer said a college education is very important in today’s world and can lead to higher income and lower unemployment. However, financial obstacles are making it increasingly difficult for students to obtain a college degree.

‘We don’t want the cost of this SUpercard to go up any higher than it has to,’ he said, holding up one student’s card. ‘College is so important, for their future and for America’s future.’

The loan increase would affect all new student loans taken out after July 1, meaning that students still attending school, as well as seniors who are graduating after the July 1 deadline, would have to pay the increased rate. The proposed bill Schumer is advocating for, which was introduced by Sen. Jack Reed of Rhode Island, would extend the current 3.4 percent interest rate for one year, Schumer said.

‘Student loan debt is almost like quicksand,’ he said. ‘It swallows you up before you can get your footing.’

The senator’s office set up the press conference because they wanted a backdrop for his announcement of his stance on student loans. College Democrats found out about the event because one of the senator’s staff members is a former College Democrats president, said Amy Snider, the current president. The senator spoke for 20 minutes.

Dylan Lustig, president of the Student Association, also spoke and encouraged students to come together in support of Schumer and the bill.

‘This summer, students need to stand up with Chuck Schumer and other senators and say that this is enough. We are paying enough to come to this school,’ he said.

Taylor Brady, an undeclared freshman in the Martin J. Whitman School of Management, said she thinks the cost of student loans is a problem at SU because of all the financial aid the university gives out.

She said the increase in student loan interest rates could hurt the economy in the future because more money will be put toward student loans instead of spending within the economy.

Said Brady: ‘Education shouldn’t have to be so expensive.’

jliannet@syr.edu 

Published on April 17, 2012 at 12:00 pm

Contact Jessica: jliannet@syr.edu | @JessicaIannetta