student debt

Ryan Delaney / WRVO

As the debt load of recent college graduates continues to rise, New York's junior senator is stumping for a new bill that will cut the interest rate on federal student loans by nearly half.

Sen. Kirsten Gillibrand (D-N.Y.) is one of about two dozen Democrats backing a bill that will reduce the loan rate on undergraduate loans to about 3.8 percent, from the nearly seven percent they sit at now. The bill would also bring down the interest rates for graduate school loans.

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Gov. Andrew Cuomo’s newly formed Student Protection Unit has launched an investigation into the student debt relief industry.

Led by the state Department of Financial Services (DFS), it’s designed to be a consumer watchdog for New York students. And, one day after being established in the 2014 Executive Budget address, the unit issued subpoenas to 13 companies in its first official action.

Ryan Delaney / WRVO file photo

New York Sen. Kirsten Gillibrand says she voted against a recent compromise on student loans because the interest rates shouldn’t be tied to market rates.

Congress let interest rates on government subsidized student loans double on July first to nearly seven percent. Last week lawmakers worked out a deal to allow rates to be tied to 10 year Treasury notes. That temporarily lowered the rates again.

Ryan Delaney / WRVO

New York's senior U.S. senator says the compromise on student loans Congress is scheduled to take up on Tuesday is a good one, even if it's not exactly what he wanted.

Interest rates on government issued subsidized student loans doubled on July 1, after Congress failed to renew the program. But late last week, several lawmakers announced a compromise that will bring rates back down, at least for now.

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Interest rates double today for any students applying for the federal government's subsidized Stafford loans, after Congress failed to agree on a deal to lower interest rates.

Students at Onondaga Community College take out $21 million in loans every year to help pay for their education. Financial Aid Director Kate Bellefeuille says some potential students at OCC will be affected by the higher rates, which are jumping from 3.4 percent to 6.8 percent.

Student debt levels rose by five percent last year according to a study by the Institute for College Access and Success.

As the rising debt of recent college graduates becomes a focus of families across the country, Sen. Kirsten Gillibrand (D-N.Y.) is trying to clarify the cost of higher education.

Gillibrand announced today that she is supporting new uniformed financial aid forms released by the Department of Education. She says a greater understanding of costs will help families plan better for college.

Niagara Falls is testing a novel approach to attracting new residents. The city is offering to pay a portion of recent college graduates' student debt in exchange for living downtown for two years.