Millions of students will see the interest rate double on their student loans this Summer costing them an extra $1,000 a year and pushing graduation debt over $30,000

More than seven million students are facing the prospect of doubled student loan interest from this Summer - costing them an extra $1,000 in interest on every yearly loan they go on to take.

After being reduced from 2008 to 2011 to a record low level of 3.4% interest, the rate on government subsidized Stafford loans is due to double back up to 6.8% on July 1

For new students taking out yearly loans it will add at least $4,000 to the average $26,600 debt they owe to the government after graduating.

The increase was due to go ahead last Summer but was delayed by Congress because of widespread opposition from hard-up families and students paying for a college education .


Students using subsidized federal loans are some of the poorest in American universities, according to the New York Times.
Students receive the loans at more favorable conditions to non-subsidized Stafford loans if they can demonstrate financial need.
They don't need to pay them back until after graduation.
Borrowers make up more than a third of those using federal student aid and more than two-thirds are from families with an annual income under $50,000, according to the Times.
Many say the extra burden of increased interest rates will cripple those students once they graduate.
'Rates on educational loans are excessively high compared to those on mortgages and other consumer loans,' Tiffany Dena Loftin, president of the United States Student Association, said.

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