7 million students are about to get a tough lesson in economics.
Interest rates on student loans subsidized by the government will most likely double to 6.8% on July 1st.
The increase will only affect one-third of all undergraduate students who have subsidized loans that are awarded based on economic need. Undergraduates with unsubsidized loans have been paying 6.8% since 2007.
Congress and The White House agree something should be done to prevent the increase; they just don't agree on how to do it.
The Republican-controlled House passed a bill last week that would stop the rates from doubling now, but would allow them to rise later.
President Obama vowed to veto it, calling it “the wrong approach.”
Created: Tue, 28 May 2013 07:32:52 EST
Updated: Fri, 31 May 2013 10:03:13 EST