All of this add up to more debt for African American middle-class and low-income students who use the subsidized loans to pay for the ever- increasing price of university tuition and fees that used to be covered by Pell grants and other federal forms of student aid. Now, students, in order
to obtain these loans, must demonstrate financial need and meet income restrictions to receive them.
If the current rate is not stopped by congress, the average subsidized Stafford loan borrower would have an additional $2,800 in college debt over a 10-year repayment term. In addition, borrowers who assume the maximum $23,000 in subsidized loans will see the total of their interest inflate an additional $5,000 over a 10-year repayment period and $11,000 over 20 years.
