Student Loan Fees Are Going To Skyrocket When Sequestration Hits Tonight

Federally subsidized student loans will see a number of fee increases and rate hikes when the sequestration budget cuts go into effect tonight, making it even more difficult for low-income families to pay for college.

According to calculations from the Student Aid Alliance, the impact on students with "the most need" will be $876.00 in extra fees. These won't impact people who already have the loans, but take effect moving forward:

The rate hikes are compounded with recent budget cuts to a number of other student loan programs. The Budget Control Act passed in 2011 slashed $35 billion in student aid programs, including the summer Summer Pell Grant, LEAP grants, subsidized interest payments for graduate and professional students and the "grace period" which gives graduates six months before they accumulate interest on their loans.