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Obama renews call to Congress to stop rate hike

Thursday - 6/21/2012, 1:53pm  ET

By KEN THOMAS
Associated Press

WASHINGTON (AP) - President Barack Obama is urging Congress to stop interest rates on student loans from doubling on July 1.

The president says millions of young people are being priced out of the college market or saddled with debt once they graduate.

If Congress doesn't act, interest rates on new loans will double from 3.4 percent to 6.8 percent come July. Obama says that means an additional $1,000 a year for the average student.

Obama says it's "mindboggling" that the stalemate in Washington has dragged on so long.

Republicans in Congress have suggested a payment plan that gradually would increase the amount that federal workers contribute to their pensions by 1.2 percent over the next three years. It is based on savings the president included in his budget plan this year.


(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)