Comptroller John C. Liu stated the following today on the rise in federally-subsidized student loan rates and the impact on New York City:
“Our City needs Congress to get back together right away and craft a fix that will cancel the doubling of federally subsidized student-loan rates. The rise in rates on new loans will hurt many struggling young New Yorkers. Our analysis, based on federal data, shows that about 912,000 New York City residents owe an average of $29,800 in student loans. Assuming a third of new student loans are federally subsidized, a permanent rise in interest rates could cost City borrowers roughly $40 million in the first year.
“With higher rates, that amount will rise rapidly – further constricting disposable incomes in a City that is a magnet for the country’s college graduates.”
Data from the Federal Reserve Bank of New York show that, even at the lower interest rate, many New Yorkers are struggling to keep up with their student loan payments:
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