Loans Will Cost Students More
CBS 7 Staff- watch video clip here
A change for student loans for next year will cost students more.
Lenders are no longer paying the 1% origination fee.
The borrower will now pay it, up front.
The rate will actually go down the next two years.
And more students want to borrow rather than work.
Robert Vasquez, UTPB Director of Financial Aid, says "The interest rate is going down from 6 point 8 percent to 3 point 4 percent."
Vasquez says the default rate on student loans is really no worse than for other loans, about five percent.
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