(WTVR) – As if paying off student loans wasn’t enough, interest rates could double this summer.
If Congress does nothing, the cost to students borrowing the maximum $23,000 in subsidized loans is an extra $5,000 over a 10-year repayment period. On July 1, the interest rate on federally subsidized loans will go from 3.4% to 6.8%. That means students taking out loans for the next school year will have to dig deeper in their pockets to pay them off.
President Obama is urging lawmakers to stop the increase. Next week, he will talk about his effort for lower rates as he campaigns at universities in North Carolina and Colorado.
Republicans say extending the lower interest rates will cost the government almost $6 billion, which is something the country can’t afford.