President Barack Obama has said he will sign the bill, which links student loan interest rates to the 10-year Treasury note.
Because interest rates are low right now, the measure means all borrowers will get an interest rate break on student loans for the upcoming academic year. It sets rates at 3.86 percent for undergraduate Stafford loans, 5.4 percent for graduate Stafford loans and 6.4 percent for PLUS loans. Rates vary from year to year for new loans, but are fixed over the life of the loan.
If interest rates rise, the rates are capped at 8.25 percent for undergraduate loans, 9.5 percent for graduate loans and 10.5 percent for PLUS loans.
The bill had an even easier time in the House, where the brief debate before the vote focused on whether the bill was functionally the same as a House-passed interest rate bill earlier this year (the Republicans’ position), or a vast improvement on that measure (the Democrats’).Share on Facebook