WASHINGTON Students who take out a subsidized government loan beginning this week will see their interest rate more than double to 6.8%.
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Congress is weighing several proposals to extend the current 3.4% rate for at least another year. It is estimated approximately 7 million students will take out a federally subsidized Stafford loan in 2013.
Republicans and Democrats in Congress are divided on the best way to resolve the stand-off. The rates that went into effect on July 1 apply only to new loans.
Approximately one-third of all undergraduates who borrow money take a Stafford loan.
