Office of Management and Budget Director Jacob Lew said Sunday that the interest rate on graduate school federal loans will start building while students are still taking courses.
Currently, interest does not start accumulating, until after graduation.
Interest will build up, but students won't have to pay until they graduate. So it will increase the burdent for paying back the loans, but it will not reduce access to education, Lew said on CNN's 'State of the Union.'
That's I think, part of how you can responsibly have a plan that deals with the challenge of solving our fiscal crisis, getting out of the situation where the deficit is growing and growing, but also investing in the future, he said.