Student loans interest to increase

The interest on student loans funded by the government will probably be doubled to 6.8% on July 1. Both the White House and Congress are against the move but disagree on what would be the proper way to handle it. Congress passed a bill last week to stop the rise, but it still leaves an opportunity to increase the rates later. President Obama didn’t approve of the bill, declaring that he would veto it because it is the “wrong approach.”

If nothing is done to prevent the change, approximately 7 million students will face higher costs when they start to pay off their student loans.