Will School Loans Skyrocket?

June 27, 2012 Updated Jun 27, 2012 at 3:00 PM EDT

By WKBW News

June 27, 2012 Updated Jun 27, 2012 at 3:00 PM EDT

Albany, N.Y. (WKBW) – Payments on student loans may not be going up after all. Lawmakers have come to an agreement that will freeze interest rates. The measure has been passed in the Senate. Now, they are hoping to push it through Congress.

This all has to do with interest rates on these loans. The deal would freeze the rates that were at risk of doubling. Currently, they stand at 3.4 percent but could jump to a whopping 6.8 percent if the deal does not go through by Monday.

U.S Senator Chuck Schumer said approving this measure would not only be beneficial to students, but it would also help the future of the economy in New York State.

“We all know how important college is these days, but we know how expensive college is these days. So, this country has made a decision we are going to help kids pay for college. Kids who want to go to college, should be able to got to the college of their choice,” Schumer said.

A final decision must be made on this matter by the beginning of next week. Legislators said they are working hard to make that happen.