A bipartisan bill that would reduce the costs of borrowing for millions of students passed the House on Wednesday and was heading to President Obama for his signature.
The legislation links student loan interest rates to the financial markets, offering lower rates for most students now but higher ones down the line if the economy improves as expected. Even as they were preparing to pass the bill, many lawmakers were already talking about a broader overhaul of the nation's colleges to curb fast-climbing costs.
"This is a win for students and taxpayers," said Rep. John Kline, the Republican chairman of the House Committee on Education and the Workforce.
The top Democrat on that committee joined Kline on the House floor to urge colleagues to back the bill.
"It saves students and families money," said Rep. George Miller, D-Calif.
Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that year's loan, but each year's loan could be more expensive than the last. Rates would rise as the economy picks up and it becomes more expensive for the government to borrow money.
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But for now, interest payments for tuition, housing and books would be less expensive under the House-passed bill.
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