President Barack Obama Friday signed into law a bipartisan student loan bill which the House overwhelmingly approved late week. The Senate OK’d the measure by a vote of 81 to 18 two weeks ago.
Without congressional action, interest rates on loans to college students were increasing from 3.4 percent to 6.8 percent. But under the law signed by Obama the interest rate for undergraduate loans will fall back to 3.86 percent. The interest rate on graduate student loans will be 5.41 percent.
Obama’s signature on the bill ends months of arguments over how much the federal government should subsidize student loans and whether students in the next several years will face crushing repayment burdens if interest rates go up, as most observers expect they will.