A bill to bring interest rates on federally subsidized student loans back down to 3.9 percent passed the U.S. House of Representatives Wednesday, and is headed to President Obama’s desk. U.S. Secretary of Education Arne Duncan said the move would be good for college students:
“I applaud the bipartisan compromise reached by President Obama and lawmakers on Capitol Hill, offering relief to millions of students and families across the country. The law will cut rates on nearly all new federal student loans and save undergraduates an average of more than $1,500 on loans taken out this year. It is an encouraging step forward in our effort to keep college affordable.
“Education is a cornerstone of a strong middle-class, and keeping student interest rates low is just part of our commitment to making a college education accessible to every single American willing to work for it. As we continue to work on ways to bring down the soaring costs of higher education, we must remember that all of us share a role in ensuring that college is affordable for students and families. There is more work ahead and I look forward to joining members of both parties in finding ways to keep a high-quality education within reach for working families.”
The deal would undo an increase in interest rates that took effect last month. Interest rates on student loans doubled after lawmakers failed to reach an agreement to prevent the increase by the July 1 deadline.