WEST PALM BEACH, Fla. - Time is running out for Congress to step in and stop a big increase for student loan interest rates.
July 1st the rate is set to double unless Congress intervenes.
The current rate is 3.4% and the new rate would be 6.8%.
With tuition rates continuing to increase, this could be a burden for students.
American college graduates owe about $1 trillion already.
Interest rates for need-based or Stafford loans is currently fixed at 3.4%.
While some lawmakers want to keep the rate the same for at least the next two years.
Others say student loan interest rates should be allowed to fluctuate according to market forces.
Higher rates could cost students as much as $5,000 more in loan repayment charges over 10-year period.
The higher interest rate would generate $36 billion in revenue this year at a time when Congress is scrambling for cash.