Student loan interest rates to double Monday

WASHINGTON

The chairman of the Education Committee and other Democrats said Thursday that the Senator would vote on July 10 on a one-year extension of the current interest rates.

Under this plan, Congress left for the week-long July 4 recess without preventing the automatic rate hike set to go into effect Monday.

Without congressional action, interest rates on new subsidized Stafford loans are set to go up from 3.4 percent to 6.9 percent.

A congressional report estimates the high interest rates would cost the average student approximately $2,600.

Lawmakers promised to return to Washington and retroactively restore the rates with a short-term fix and then a longer-range measure.

ABC News and The Associated Press contributed to this report.

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