If not prevented then interest rates on student loans will double starting from July 1, 2013. It means student loan interest rate will increase from 3.4 percent to 6.8 percent. Lawmakers representing both the Democrats and the Republicans both are saying that they want to put a halt to the increase, but are divided on how to do that.
President Obama further added that if Congress fails to act on the issue and prevent the loan rates from rising then students will need to incur $1000 in debt annually.
President Obama made these statements in the Rose Garden, Washington. The event marked the beginning of a public campaign by the President. The campaign is intended to find long-term compromises to stop the increase in student loan rates.
President Obama also spoke about the importance of an advanced degree, and stressed that without an advanced degree he could not be where he is right now.