WASHINGTON D.C. -- Despite a strong push by lawmakers, it appears unlikely that an agreement to stave off the doubling of interest rates on some student loans will be met by the July 1 deadline.
Government subsidized Stafford loans, the rates of loans in question, are set to rise from 3.4% to 6.8% if no deal is reached. That would affect nearly seven million new loans this year for middle and low income students looking to pay for college.
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The biggest hurdle for negotiations seems to focus on the question of whether to require an overall cap above which interest rates on new loans could not rise.
Higher rates could cost students an extra $5,000 over a 10-year period. Currently, statistics show American college grads owe more than $1 trillion combined in student loans.