LITTLE ROCK, Ark. (KTHV) -- College students taking out new loans for the fall term will see interest rates twice what they were in the spring.

That's unless Congress fulfills its pledge to restore lower rates when it returns after the July 4 holiday.

Subsidized Stafford loans, which account for roughly a quarter of all direct federal borrowing, went from three-point-four percent interest to6.8 percent interest today.

Economists say this kind of student debt is a financial crisis that will take a toll on the broader economy.

Sen. Jack Reed of Rhode Island says, "People in their 20's are putting off home purchases, putting off automobile purchases, are not doing what their parents' generations did because they have so much debt."

Both Democrats and Republicans say they want a deal to stop the increase in student debt. But lawmakers have left the Capitol for their July 4th break.

Senators say they'll take up the issue again after the recess, possibly scheduling a vote on July 10th.

Dr. Jane Wayland with UALR joinedTHV's Alyse Eadywith more on what this means for students and their families.

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