"As the rates increase, it does have an impact," said Kenneth Tague, interim director of financial aid at Florida A&M University.
Most students at FAMU
have federal direct loans, which are awarded from U.S. government funds and are subject to the new loan rates.Schools can choose to participate in either the direct loan program or the FFEL
Stafford Loan program, where loans are given by private lenders.Under the direct loan program, repayments are made to the U.S. Department of Education
Currently, there are about 8,500 student loans outstanding at FAMU
, which account for more than $50 million, Tague