Students worried about their growing student loan debt may soon have more to worry about: Congress is likely to pass a bill that will slash $12.7 billion from federal student-loan programs over the next five years.

The changes will not affect the number of student loans given, but will affect the interest rates students and parents pay.

The cuts — the biggest in the history of the student loan program – will affect the PLUS and Stafford Loan Program by increasing interest rates an average of 28 percent. They are scheduled to become effective July 1, 2006.

The Republican “reconciliation bill” is part of a $40 billion deficit-reduction package passed by Congress at the end of December that cuts funding from student loans, medicaid, federal child-support enforcement funds and pension insurance just to name a few.

The bill has passed both the House of Representa-tives and the Senate, but because of some minor modifications made in the Senate, it will return to the House for final passage at the end of January.

Vice president Cheney broke the tie vote over the bill in the Senate. In all, 44 Democrats, five Repub-licans and one Indepen-dent voted against the bill.

The student loan cuts come at a time when tax cuts are favored by the Republican dominated Congress. The House recently passed $110 billion in tax cuts, while $106 billion more might be cut over the next five years.

“This is the most unwelcome change — and insult — to higher education ever made,” said Terry Wall, office manager of the University of North Carolina Association of Student Governments.

“We want the bill to be an investment [in] our education. It’s important when this money needs to go to our future, and it’s going elsewhere — war and corporate tax breaks,” Wall said.

According to Wall, the problem is especially severe because, with so few grants available, students are forced to turn to loans.

“So many students are in need of assistance,” she said. “I know it will discourage students that are graduating over the next couple of years.”

Sharon Oliver, N.C. Central University’s Scholarships and Student Aid director said she understands resources are limited and Congress has to spread the money around, but education should be a priority.

“I don’t ever support any cuts in education,” she said. “This is how we change America: We make sure students are educated.”

Oliver added that this new bill will impact lenders — and eventually students — if interest rates and fees become higher.

“Over 90 percent of students at N.C. Central University are on some type of financial aid,” Oliver said.

According to Finaid.org, an online student guide to financial aid, 65 percent of undergraduate students borrow money to finance their education.

The average federal student loan debt for graduating students is $19,202, but over 25 percent of undergraduates borrow over $25,000.

The bill would increase Stafford loans rates from 4.7 to 6.8 percent, and it would increase PLUS loan rates from 6.1 to 8.5 percent.

For example, a student borrowing $20,000 at 4.7 percent would pay back $25,080 over 10 years, but at a rate of 6.8 percent that same student would end up paying back $27,600 — $2,520 more.

Psychology senior Candice Harding is taking action now. Harding, who plans to attend graduate school, is consolidating her loans now before the rates increase.

“It’s frustrating,” Harding said. “Even if I get a job, I will end up spending most of my money paying off my loans. I will have other things to pay for — like a house.”

Harding also said that it’s sad that Congress doesn’t support the students in America, but will spend billions of dollars in countries that don’t even like America.