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Today, a broad coalition of student, education, faith, business, labor, consumer protection and school administrator groups and associations sent a letter to Republican and Democratic leaders urging action to prevent the doubling of interest rates on student loans. Without congressional action, on July 1 over 7 million students will see the interest rate on their student loan double from 3.4 to 6.8 percent.
The letter explained the potential impact noting that "On average, the doubling of the interest rate would add approximately $1,000 for every year a student takes out a loan, adding up to more than $4,000 over a four-year education." The rate hike could not come at a worse time. The letter states:
"The national recession has led to weak state economies, which in turn have squeezed college budgets. The result is higher tuition costs being passed on to students and families throughout the country. In 2011, 46 states dealt with budget shortfalls, resulting in double-digit tuition increases."
The letter closes with a call for Congress "to keep a college education within reach by stopping interest rates on subsidized Stafford student loans from doubling this July."
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