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."