CUMBERLAND — College students are paying higher interest rates on their federal college loans as of July 1, according to a report from Campaign for America’s Future, a group of citizen activists and policy analysts.

Stafford loan interest rates increased from 5.3 percent to 7.14 percent on old loans and to 6.8 percent on new loans and PLUS loans, which are obtained by students’ parents, increased from 6.1 percent to nearly 8 percent for existing loans and to 8.5 percent on new loans.

The interest rates are pretty high compared to the rates from two or three years ago, but they have been higher, according to Kelly Izat, financial aid counselor at Frostburg State University.

“They’ve always changed once a year — they’re variable,” Izat said of the interest rates. “Compared to what it’s been for the last couple years, it’s a shock.”

Although the interest rates have changed from year to year, interest rates on federal loans dispersed after July 1 will be fixed, according to Izat.

What is significant about the changes in interest rates is that the U.S Department of Education has fixed the rates on new loans, said Alan Batchelor, director of financial aid at Garrett College.

Although interest rates have increased, the Pell Grant program has not increased in recent years, according to Cindy Harbel, director of financial aid at Allegany College of Maryland.

The increasing interest rates concern Harbel.

She said that although students may be concerned about the debt created by financing their college education, the increased rates will not prevent students from applying for loans.

Like Harbel, Izat does not believe that people will be less inclined to apply for college loans because of the higher rates.

Batchelor said that few students at Garrett College have student loans.

Even though the interest rates have increased, federal loans still carry lower interest rates than private loans, according to Izat.

For more information on Campaign for America’s Future, log onto www.ourfuture.org.

Jennifer Raley can be reached at jraley@times-news.com.