continued Fox added his sister was at the campus Monday, too, taking a tour of the college before entering in the fall. He said she turned down offers from Rochester Institute of Technology and Rensselaer Polytechnic Institute to attend UAlbany.
More than 7 million students nationwide tap federal loans to pay for college, and around 66 percent of graduates hold federal loans, according to Tonko’s Office. The average amount of federal loans for a student totals around $26,600.
Stafford loans are offered in unsubsidized and subsidized forms, with a financial need only required for subsidized loans. The increased rate of 6.8 percent interest for subsidized loans now matches unsubsidized loans.
“Quality higher education should not be a luxury for a privileged few, who may not need those loans, but should be available to everyone,” Tonko said. “Everybody deserves that opportunity to stretch their intellectual power … to be able to contribute their talents, their skills, their passions to the development of a community.”
The average New York student with a subsidized Stafford loan borrowed around $3,800 this year. The legislation Tonko lauds claims to save such borrower an average of $1,000 over the course of the loan.
The U.S. Department of Education estimated the annual price for undergraduate tuition, room, and board for 2010-11 school year was $13,564 at public institutions, $36,252 at private not-for-profit institutions and $23,495 at private for-profit institutions. From the 2000-01 school year, this represents a 42 percent increase at public institutions and a 31 percent increase at private not-for-profit institutions.
On May 23, a student loan bill pushed by U.S. House Republicans was passed that would tie student loans to a market-based interest rate. Student loan rates would also be adjusted annually to match the market. The Senate majority said it would not bring the House bill to the floor for a vote.