The bill would delay an interest rate hike set to take effect on July 1 for federally-subsidized Stafford loans.
Unless Congress intervenes, the rate will double from 3.4 to 6.8 percent.
Senator Charles Schumer says that could cost students up to an additional $3800 over a 10-year repayment period.
""That's going to cost these young people who are our future, they're the cream of our society in so many ways, it's going to cost them a fortune," said Schumer.
"The burden is enormous."
Schumer is pushing to make the lower interest rate permanent.
8 million undergraduates nationwide currently receive Stafford loans.
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