Students about the get tough lesson in economics

Students about the get tough lesson in economics
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Tuesday, May 28, 2013 - 6:46am

Seven million students are about to get a tough lesson in economics.Interest rates on student loans subsidized by the government will most likely double to six-point-eight-percent on July first.

The increase will only affect one-third of all undergraduate students who have subsidized loans that are awarded based on economic need.
Undergraduates with unsubsidized loans have been paying six-point-eight-percent since 2007.

Congress and the White House agree something should be done to prevent the increase, they just don't agree on how to do it.The republican-controlled House passed a bill last week that would stop the rates from doubling now, but would allow them to rise later.

President Obama vowed to veto it, calling it the "wrong approach."

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