MERIDIAN TOWNSHIP - More money may be coming out of students pockets come this fall. On July 1st the rate for new subsidized student loans doubled from 3.8 percent to 6.8 percent. This hike would increase the average amount of a loan by 2,600 dollars.

Senate majority leader Harry Reid has proposed a new bill that would keep loan rates at 3.4 percent, for any loans between July of this year and June of 2014. That bill will be voted on Wednesday July 10th.

House Republicans have drafted their own solution, one that is more in line with President Obama's original solution, which has to do with the ten year Treasury note plus a 2.5 percent add on. The loan rates would fluctuate with the market during the lifespan of the loan, which is the element where democrats mostly disagree. This plan would also increase loans for grad students or parents of undergrads by 4.5 percent.

"It's unfortunate that student loan rates might double," said Michigan State student Kevin Carmody. "I think it's important for people to receive a higher education, but its already tough for most people to pay off their student debt."

There is time for a solution. These loan rates wouldn't go into effect until this upcoming school year.