Sen. Bernard Sanders, I-Vt., told CNBC on Monday he's "very disappointed" interest rates on federally subsidized Stafford student loans doubled overnight, soaring from 3.4 percent to 6.8 percent after Congress failed to reach a deal that would have prevented such an increase.
"I think that it is totally absurd for the middle class of this country and for our entire economy," Sanders said of the student loan rate increase. "The idea of allowing rates to float up to 7 or 8 percent is preposterous."
(Read More: Yet Another Drawback to Student loans)
Sanders said that to compete in the global marketplace, American youth must obtain a college education. Given the rising cost of higher education, though, Sanders said it's become more difficult for students to afford college. Therefore, he said availability of a low interest rate loan is essential for the education of the low and middle classes.
"It must be a priority that we do our best to see this generation get the best education they can. That's not only good for the young people, it's important for the economy of this country," Sanders told "Squawk on the Street," contending "we should stabilize rates at 3.4 percent for the next several years while we come up with a longer-term plan."
(Read More: Millennials' Ball and Chain: Student Loan Debt)
Sanders said the odds are "pretty good" that Congress will agree to a retroactive fix that would freeze rates at 3.4 percent. He said it will be Congress' top priority upon return from the Independence Day holiday.
—By CNBC's Drew Sandholm. Follow him on Twitter @DrewSandholm.