- 07.01.13 11:05 AM EDT
Congress missed their July 1 deadline, leaving millions of students who are taking out subsidized loans with the burden of paying double the interest rate. Democrats and Republicans failed to reach a consensus on the issue in time to protect students from paying an increased rate of 6.8% instead of 3.4%. Even at the original interest, two out of five students with loans fall behind on their payments in the first five years.
Congress is out of session for their July 4th recess, meaning that another vote on the issue won't be until July 10.