Interest Rate Hikes Could Hurt Hawaii Students

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Looming increases to subsidized federal student loans could take a toll on thousands of Hawaii students, a problem that some education leaders worry might discourage many incoming Hawaii freshmen from completing school or making the most out of their college careers.

But Hawaii university officials say their hands are tied in the face of the likely hikes, which are expected to make college even more unaffordable for students across the country.

Experts say the so-called Stafford loans — which come with lower interest rates than most loans and are different from other federal aid such as Pell Grants — play a role in the nation's economy because they support all types of students, including those from middle- and upper middle-class families.

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