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Federal Stafford Loan interest rate increase: Who it affects

President Barack Obama walks to stage to discu...

President Barack Obama walks to stage to discuss student loans in the Diplomatic Reception Room.

This week there was some bad news for college students hoping to get a subsidized federal student loan, called a Stafford Loan, to help pay for college. Congress has allowed the interest rate for subsidized loans to double from 3.4% to 6.8%, which is the current rate for unsubsidized loans. The new rate starts July 1, 2013 and affects students who are newly applying for the loan or are renewing their loan after July 1. According to CNNMoney, about one-third of college students who need federal financial aid get a Stafford Loan. Read more