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Rep. Joe Courtney, D-Conn., joins students impacted by the rate hike, US PIRG, Rebuild the Dream, Campus Progress and the United States Student Association, to announce the collection of over 130,000 letters to Congress to prevent student loan interest rates from doubling this July, Tuesday, March 13, 2012, during a news conference on Capitol Hill in Washington. (AP Photo/Manuel Balce Ceneta)
WASHINGTON >> Millions of college students could be in for a shock this summer. The interest rate on a popular federally subsidized student loan doubles in July unless Congress acts.
College students on Tuesday are delivering 130,000 letters to congressional leaders asking them to stop rates from increasing from 3.4 to 6.8 percent. The rate hike affects new subsidized Stafford loans used by low and middle income undergraduates.
President Barack Obama has asked Congress to keep rates at the lower rate. His administration has said that would help 7.4 million borrowers save on average more than a thousand dollars over the life of the loan.
But keeping the lower rate is estimated to cost the government billions more annually.
