USA Today reports that the fixed interest rate on nearly 8 million student loans is set to double on July 1:
Advocates aren't sure if there's enough support in Congress to prevent the interest rate from doubling to 6.8%.
If the rate does double, recipients would pay an extra $5,000 over 10 years if they borrow the maximum $23,000, said Rich Williams, a higher-education policy analyst at the U.S. Public Interest Research Group.
Christie Leighton, associate director of student financial services at Colorado State University, worried about the chilling effect of higher interest rates on future enrollments. "Would the possibility of more debt … dissuade students from even coming?" she said. "We don't know that for sure, but we do know it would be something they'd think about before enrolling."