By Jennifer Liberto, CNNMoney
WASHINGTON (CNNMoney) - President Obama will use his bully pulpit to urge lawmakers to prevent a doubling of interest rates on federally subsidized student loans.
On July 1, the interest rate on federal subsidized loans will go from 3.4% to 6.8%. That means students taking out loans for the next school year will have to dig deeper in their pockets to pay them off.
"If we want to keep jobs in our country, we have to have an educated work force," Secretary of Education Arne Duncan said Friday. "We have to educate our way to a better economy."
More than 7 million undergraduates have subsidized student loans, which means the federal government absorbs some of the interest rate for lower- and middle-income families based on financial need.
If Congress does nothing, the cost to students borrowing the maximum $23,000 in subsidized loans is an extra $5,000 over a 10-year repayment period.