Student loan price set to double: 'It's very tough'

EUGENE, Ore. -- For students living on loans, life is a delicate balance.

"I'm a mom, I'm a single mother," said full-time Lane Community College student Samantha Davis. "It's very tough, it is. It's hard to keep up with my school work, it's hard to keep up with his school work, sports, just making sure his education is good, making sure I have quality time with him."

Davis said she's taken out subsidized Stafford loans, like almost 10,000 other LCC students according to the school. For students taking out loans starting July 1, 2012, the interest rate on those loans doubles to cut down federal costs.

"I think it's going to affect a lot of people who live on the school budget," said LCC student Selena Unser.

How much money does that mean?

With the current 3.4 percent interest rate, for a $5,500 Stafford subsidized loan, paid off over ten years, the borrower would eventually pay $995.59 in interest alone. If that loan was taken out starting July 1, that same student would pay $2,095.52 in interest alone.

"It means I probably will have to go to work part-time and cut back on school some," said Unser. "So that's hard too, because if you go to part-time, they help that they give you is less. So it's just a matter of trying to go to school full-time, and work, and try and take care of a kid.

"It's not unsubstantial," said LCC Financial Aid Director Helen Faith.

"With the interest rates doubling, I have to get a job, and I have to slow down on my classes," said Davis. "Meaning I'm going to take longer, be in school longer than what I had originally planned."

While Davis pushes back her graduation date, Faith said the interest on her loans will keep adding up.

"But I don't have a choice in the matter, so it's just what we have to do," said Davis.