Paying off college loans is about to become a lot harder for millions of students in the nation.
On Monday the interest rate on subsidized government loans doubled after Congress failed to reach a deal. Rates jumped from 3.4 percent to 6.8 percent. The increase will cost the average college student an additional $2,600. Midwestern State University Students feel like they just can't catch a break.
"I think it definitely poses a problem for students, especially for new incoming students who are just starting off their educational journey and have enough difficulties as it is. I think it's important for society to kind of help us out a bit," said an MSU student.
Another student said this would hurt people in the long run. "Students won't want to pay for college anymore. They're going to feel like they're paying money for a piece of paper that might not help them in the long run because finding a job is so hard right now."
The rate hike will not apply to existing loans, just new ones. MSU financial aid officers said they've been tracking negotiations at congress for some time now and they made sure incoming and current students knew about the hike ahead of time. Many students said they simply have lost faith in the loan system.
"Well I know about my parents loan and my mom is still paying off hers and I don't want that for myself or any future family," said a concerned student.
Lawmakers said they'll take up the issue again after the 4th of July recess. Democrats are hoping to vote on a one year extension of the previous rate on July 10th. However, Republicans support a proposal that would link interest rates to the financial markets.