Interest rates on federally subsidized Stafford student loans doubled overnight, soaring from 3.4 percent to 6.8 percent after Congress failed to reach a deal.
Though lawmakers potentially could still pass a bill to undo the damage, Congress' Joint Economic Committee has estimated the increase -- unless and until it is reversed -- will cost the average college student an additional $2,600.
Democrats have sought to keep interest on Stafford loans low, saying poor and middle class students need the help to get a college education. Republicans have proposed linking student loans to the financial markets instead of letting Congress set federal lending rates. President Obama included a variation of that market-based approach in the budget he sent to Congress earlier this year, leaving his fellow Democrats trying to block his efforts.http://www.foxnews.com/politics/2013/07/01/student-loan-rates-double-as-calendar-turns-to-july/
