House Approves Lower Rates on Student Loans
WASHINGTON (AP/WGGB) — A bill that would lower the cost of student loans has passed the House and is heading to President Barack Obama for his signature.
The House on Wednesday gave final congressional approval to a bipartisan measure that links student loan interest rates to the financial markets. Most students would see lower interest rates in time for classes this fall.
In response to the House approving the bill, Congressman Richard Neal had this to say, “As someone who depended on student loans to go to college, I know how important they are for people in western Massachusetts who need help to pay for college. With tuition costs rising, these federal loans have become even MORE critical. The challenge is to keep them affordable by keeping interest rates low. I believe this bipartisan compromise is a victory for students and parents in America who want to fulfill their higher education goals.”
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.