Unless Congress acts to prevent an increase, subsidized loan interest rates may double.

President Obama has proposed moving student loan interest rates to a more flexible policy rather than the present system of interest rates fixed by law, according to an April 9 Chronicle of Higher Education article. However, subsidized student loan interest rates will double from 3.4 percent to 6.8 percent if Congress does not act by the time existing legislation expires July 1.

Although students would feel the increase’s effects more in the later stages of their college career, several university officials’ opinions varied on how it could affect the university and how the changes would affect other forms of financial aid such as scholarships.

Chancellor Rita Cheng said she agrees with Obama’s proposed plan.

“Loans are always an issue, and it’s something that we’re concerned about for our students,” she said. “The most important thing will be full disclosure, so students would know that after a certain period of time, if (rates) change it would be for new loans and it would be for going forward, not changing the interest rate on existing loans.”

While the university is concerned with affordability and continues to seek ways to help students attend, Cheng said students may not be able to rely on scholarships.

“Scholarships are competitive and something that, as an institution, we have limits on what we are able to offer in institutional aid,” she said.

Thomas Mitchell, associate professor of economics, said the increase could cause the university to experience an enrollment decrease.

“Students at the margin who … believe they can barely afford the loans of the lower interest rate will look at the higher interest rate and conclude they can’t make the loan and can’t go to school,” Mitchell said.

Zsolt Becsi, associate professor of economics, agreed the university would feel effects of the increase, and it will be through enrollment. People will continue to take out loans while the rate is lower, but interest rates could negatively affect university enrollment negatively in the next five years, he said.

However, college is still very beneficial for a student even with the potentially risin interest rate, he said. Students should recognize the risk involved with taking out a loan, but they should still do it because of the ultimate payoff — a good career, he said.

Becsi also said community college enrollment will benefit from a risen interest rate.

“When loan rates go up, more people are going to go do their first two years in community college and then move to a university,” he said.

However, Financial Aid Director Terri Harfst does not think the increase will affect the university’s enrollment. She said students will still take out the loans so they can get a good job and better themselves.

Harfst said she doesn’t think the increase will scare any incoming freshmen away because the increase won’t make any student decide not to attend college.

With rising interest rates, scholarships will be important too, Harfst said.

“Grants and scholarships are free,” she said. “Loans you have to repay,” she said.

While administration had varying opinions on the increase’s effect, one student said the interest rate changes could be a new post-college burden.

Joshua Shirley, a law student from Mount Vernon, said the increase would be bad for students because it puts an extra burden on them to find work immediately after college, and possibly in college. However, Shirley said he thinks the university’s enrollment will not be affected too much by the interest rate increase either.

“Do I think this is going to stop a lot of kids from going to college? Absolutely not,” he said, “In this country, it just seems to be a rite of passage these days.”