Doubling the subsidized rate could also have discouraged students from seeking federal aid or pushed many toward cheaper public institutions or two-year community colleges, said Ronald Ehrenberg, director of the Cornell Higher Education Research Institute and a professor of labor relations and economics.

FORBES: Student Loan Rates To Remain Low, For Now

That year a new manager took over and instituted a tiered system of payment: If your household consumption was not more than 7.5 cubic meters per month (this would take care of water required for drinking, cooking and some hygienic needs of an average family of eight), you paid a subsidized rate, but if your monthly consumption was more, you paid a market rate.

FORBES: Magazine Article

He reminded listeners that their pressure last year persuaded legislators to extend the current 3.4% rate on subsidized loans through June instead of letting it double in 2012.

CNN: Obama repeats strategy in student loan fight