Before the July 4th break in Washington D.C., there was no action taken to avoid student loan rates doubling from 3.4-percent to 6.8-percent. Senator Chuck Grassley shares that he is flabbergasted that nothing occurred to avoid this. He explains that if the government agreed to President Barack Obama’s plan, which ties the rates to the treasury, then rates would be approximately 4-percent instead of depending on congress to set it.

Grassley does believe that the issue will be brought up again and that it will be retroactive to July 1st.