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USA Today: Interest rate could double on some student loans.
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WASHINGTON - College would get costlier for millions of low- and middle-income student loan recipients starting next fall, unless Congress intervenes.
The fixed interest rate on Stafford federal subsidized loans, held by nearly 8 million undergraduates, is set to double on July 1, a few months before the start of the new school year.
President Obama has asked Congress to block the rate hike for current and future Stafford loan recipients, but legislation aimed at keeping it permanently at 3.4% has stalled in Congress.
Obama's fiscal 2013 budget would freeze the interest rate at 3.4% for a year.
"We're saying to Congress, now is not the time to make school more expensive for young people," Obama said last month when he unveiled the budget. "And they can act right now to make that change."
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