Student loans look like they’ll increase

Posted at 6:25 AM, May 25, 2012
and last updated 2012-05-25 06:25:34-04

(WTVR) - The U.S. Senate is rejecting two proposals that would keep student loan rates from doubling in July.

The democratic and republican plans were shot down because both sides couldn't agree over how to pay the six-billion dollar tab necessary to keep the federally backed rate at 3.4 percent for another year.

If congress fails to act by July 1, more than seven-million undergraduates with federally subsidized loans for next year's tuition will have to pay substantially more to eliminate their debt.