Following months on bickering on Capitol Hill, the president wants Congress to stop that increase from happening and students agree.
"Raise the prices? That doesn't make sense. It makes it look like you don't want us to get educated," said N.C. State senior Azariah Bell.
"If congress fails to act, more than 7 million students will suddenly be hit with the equivalent of a $1,000 tax hike," said President Obama. "And that's not something you can afford right now."
That was the president's jab from the White House's East Room Thursday in front of an audience of college students.
If Congress doesn't act, interest rates on new loans will double from 3.4 percent to 6.8 percent.
"For me, that's exactly how I got to college," said N.C. State senior Carnell Griffin. "I have loans and scholarships."
For Griffin, the impact is greater. "I think that they're taking that opportunity away from improvement in America."
"I guess I should be a little more educated about the situation because I haven't signed anything yet," said recent graduate Ashley Beasley.
Beasley is thinking about consolidating her undergrad and graduate school loans. She's seeking full-time work. So far, she's only been able to find a temp position. She said increasing rates now could do more damage to the economy.
"I'm not going to be buying a house. I'm not going to be starting a small business that maybe I would in the future," said Beasley. "I'm not going to be doing a lot of things because this is my priority right now."
Both Congress and the president are saying the interest rate increase could affect the entire economy.