On July 1st, interest rates on student loans doubled to 6.8 percent from 3.4 percent after Congress failed to meet the deadline to prevent the rate increase.
Now, after urging Congress to address the issue, President Obama is set to sign a bill into law that will lower interest rates for college students.
Via The Raw Story:
The House of Representatives on Wednesday passed a bill that would reverse a recent hike in federal student loan interest rates, lowering them to 3.86 percent for undergraduates in the new school year.
The House voted 392-31 in favor of the bill that will switch interest rates to a market-based system.
The bill pegs interest rates on student loans to the 10-year Treasury note plus 2.05 percentage points for undergraduates, and plus 3.6 percentage points for graduate loans.