Rachael Headley - Features Writer
Student loan interest rates have been a hot topic not only for legislators, but also for students as the fall semester begins.
Congress spent the summer in conflict as the House of Representatives, the Senate and the President were unable to break the stalemate on student loans. Congress failed to make a decision by the July 1 deadline, and unsubsidized Stafford loans automatically doubled from 3.4 percent to 6.8 percent. Graduate loans remained at 6.8 percent and PLUS loans stayed at 7.9 percent.
Shortly after the new interest rate was implemented, Congress agreed upon the Bipartisan Student Loan Certainty Act of 2013. This act not only alters interest rates depending on the market, but also guarantees that undergraduate loan interest rates will not exceed 8.25 percent, graduate student loan rates will not exceed 9.5 percent and the rates of loans taken out by parents will not exceed 10.5 percent.
Nationwide students affected by the fluctuating interest rates and undergraduates are wondering how this new legislation will impact their futures. While Samford students deal with the same predicament, Jennifer Epperson, the associate director of financial aid, said Samford is not likely to see much change in enrollment.
Epperson reported that the average student debt at Samford is $24,500 and in seven years of working for the university she has seen payment delinquency decrease, unlike many other institutions.
The resources available to students are what put Samford ahead of other universities when it comes to financial aid, Epperson said.
"The biggest difference is the financial institution we have," Epperson said.
This year Samford offered a new payment plan for student convenience. The first payment is 50 percent of tuition that is due on the first day of classes, followed by two additional deposits of 25 percent each that complete the student's tuition payment by mid-October. Epperson said that the Office of Financial Aid strives to work with students individually to meet their needs.
Phillip Fiegle, a fitness and health promotion major and December 2012 graduate, had a slightly different opinion. He relied entirely on student loans in order to attend Samford.
"I had to get loans because I couldn't get enough scholarship," Fiegle said, "and I couldn't get enough scholarship because I worked too much and didn't make good enough grades to qualify for them. It was a cycle."
Fiegle believes students who are prepared to take on the financial responsibility of college are going to do it regardless of the interest rates.
"I know God placed Samford in my path for a reason, and it molded me into the person I am today," said Fiegle, "but had I known the financial burden it would put on my life while I was in college and after graduating, well, it might have changed my mind."
Category: Features
