Rates on new, subsidized federal loans are now at 6.8-percent. Federal subsidized loans were the only loans that increased on Monday, but those loans do not accumulate interest until after students have graduated. "I do not believe there will be a significant impact because on subsidized loans the government pays the interest while the student is in school, so compared to other loans that are offered out there you can't beat that." TAMIU said they have already been preparing their students for this increase for the past two years. In fact, interest rates were supposed to double in 2012, but congress passed a one-year extension of the 3.4-percent rate. This increase in rate could possibly even help students. "If anything, I think students will be more mindful when it comes to borrowing as far as the amount they want to borrow. Maybe they'll be offered $5,500, but because of this increase they will be more inclined to just borrow just what they need verse the full amount being offered to them." Laredo Community College officials said they opted out of this loan program for years now, so their students will not be affected because they don't accept those loans. Congress can still make a change to lower the interest rate back to 3.4-percent and retroactive it until July 1.