A college education, for most, is a pricey investment.

And as of July 1, it could get even costlier.

In 2007, Congress approved a law lowering the interest rates on subsidized Stafford loans from 6.8 percent to 3.4 percent to entice more students to go to college.

That law expires on July 1, 2012.

Earlier this year, Democrats drafted a bill that would extend that lower interest rate for another year, but on May 8, Senate Republicans blocked the bill, saying the Democrats are only trying to woo the student vote in an election year.

Both sides say they want extended low interest rates and hope to come to a compromise soon.

But while the bill rests in legislative no man’s land, students and financial aid officials prepare for the increase.

“That’s of a huge concern to me because if I don’t have money to pay for college I’ll have to get the loan,” said Christine Rider, a Gainesville State College student who is considering loans.

Rider plans on attending North Georgia College & State University in the fall and says the higher tuition coupled with a higher interest rate could change some of her plans.

“I might not even be able to finish school for that reason,” she said. “If I think I’m getting too far in the hole with the loans then I just, unfortunately, have to stop my career in school and go back to the working world until things start settling better.”

If an extension is not approved, the average student could see an increase of $1,000 in interest costs over the life of the loan.

But the pending increase might not scare off as many students as expected.

Jill Rayner, North Georgia’s financial aid director, says she thinks the interest hike won’t affect the number of federal loans issued, but it could strain students even more after graduation.

“I don’t think it’s going to stop students from taking out student loans,” said Rayner. “I think what will happen is the students may have a more difficult time paying those loans off at the higher interest rate.”

Interest begins accruing on subsidized Stafford loans after students leave school.

Rayner says her department has not seen a lot of concern from students, but is working on providing them with more information with the hope they’ll be better educated in how the loan process works.

“That’s what we’re hoping,” she said. “We’re hoping that this has actually made them more aware of what happens on the back side of when you graduate and how is this going to affect you and your family once you graduate.”

According to The Project on Student Debt, the average debt for a Georgia student upon graduation is $19,000.

That includes all forms of loans.

The national average is $25,000.

“I don’t want to be faced with the possibility of graduating with a degree and it’s going to be hard to find a job, and then you’re thinking about your loans and you’re not even earning money yet,” said Yonique Henry, a Gainesville State sophomore. “So, that part is kind of scary.”

Henry says she is never going to take out student loans. That was her plan from the beginning.

“I want to start living when I graduate,” said Henry. “Not paying somebody back for four years of education. It doesn’t make sense to me.”

The Senate has until July 1 to work out an extension if it chooses to do so.

Rayner said she thinks it will, for the short term anyway.

“My guess is there is probably going to be some kind of compromise because it’s an election year, truthfully,” said Rayner. “Neither the Democrats nor the Republicans want to tell their huge student voting population that they failed and increased their interest rate. What will happen after the election will be a whole different story.”