Image uploaded from a quicklink (Image by Unknown Owner) Details DMCA | President Obama has called on Congress to prevent subsidized student loan rates from doubling from 3.4 percent to 6.8 percent. Speaking in the Rose Garden on Friday morning, he called for a quick solution to a problem that would afflict young people already saddled with big loans as they emerged into a very difficult job market. "If Congress doesn't act by July 1, federal student loan rates are set to double. It's like a $1,000 tax hike," the president, surrounded by college students, said. Obama's plan ties the rate to the 10-year Treasury rate, and fixes that loan to the rate when it is issued. It also provides funding to assist struggling students based on their income. |