Congress approves student loan relief; bill awaits Obama’s signature

A compromise bill that keeps student loan rates from doubling and that ties future rates to market values has passed Congress and now awaits the president’s signature.
The bill sets rates for undergraduates who take out loans at 3.9 percent this school year, graduate students at 5.4 percent, and PLUS loans for graduate and professional students at 6.4 percent. The rates doubled, to 6.8 percent, on July 1 and would have remained at that rate if the federal government hadn’t acted.
The House of Representatives approved the legislation Wednesday, while the Senate approved it last week.
The deal would help about 11 million borrowers, including about 608,000 Californians, with federally subsidized and unsubsidized Stafford loans and PLUS loans, EdSource Today previously reported. The bill ties future interest rates to the 10-year Treasury note and caps interest rates at a fixed amount for the life of the loan. Currently, student loan rates are set by Congress.
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