House approves lower rates on student loans

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Associated Press

Posted on July 31, 2013 at 10:00 PM

WASHINGTON (AP) — At least for the coming school year, a bipartisan bill passed by the House will lower the cost of borrowing for millions of students.

The measure, which passed on a vote of 392-31, awaits the signature of President Barack Obama.

Undegraduates this fall will borrow at a 3.9 percent increase 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. That's because interest rates will be linked to the financial markets. That means the rates will climb as the economy improves.

Interest rates would not top 8.25 percent for undergraduates. The White House endorsed the deal over objections from consumer advocates that the proposal could cost future students.

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%@AP Links

275-w-40-(Tim Maguire, AP correspondent, with House Speaker John Boehner, R-Ohio and Rep. John Kline, R-Minn.)--Student loan rates will soon drop. AP correspondent Tim Maguire reports. ((cut opens with sound)) (31 Jul 2013)

<<CUT *275 (07/31/13)££ 00:40

267-c-22-(Mark Smith, AP White House correspondent)-"of those categories"-AP White House Correspondent Mark Smith reports the measure reverses the doubling of interest rates that hit July 1st. (31 Jul 2013)

<<CUT *267 (07/31/13)££ 00:22 "of those categories"

269-a-15-(House Speaker John Boehner, R-Ohio, announcing vote)-"on the table"-House Speaker John Boehner announces the tally of the vote that sends the student loan bill on to President Obama. (31 Jul 2013)

<<CUT *269 (07/31/13)££ 00:15 "on the table"

273-a-08-(Representative George Miller, D-Calif. ranking member, House Education Committee, during floor debate)-"in interest payments"-California Congressman George Miller says the lower interest rates will save students a lot of money. (31 Jul 2013)

<<CUT *273 (07/31/13)££ 00:08 "in interest payments"

268-c-21-(Mark Smith, AP White House correspondent)-"least afford it"-AP White House Correspondent Mark Smith reports bill that passed with the president's blessing is a bipartisan compromise. (31 Jul 2013)

<<CUT *268 (07/31/13)££ 00:21 "least afford it"

266-v-34-(Mark Smith, AP White House correspondent)--The House has passed and sent to President Obama a bill rolling back the big jump in student loan rates. AP White House Correspondent Mark Smith reports. (31 Jul 2013)

<<CUT *266 (07/31/13)££ 00:34

271-a-09-(Representative John Kline, R-Minn. chairman, House Education Committee, during floor debate)-"students and taxpayers"-Minnesota Congressman John Kline says he's happy that Democrats have agreed to tie student loan rates to financial markets. (31 Jul 2013)

<<CUT *271 (07/31/13)££ 00:09 "students and taxpayers"

APPHOTO DCMC116: Rep. Virginia Foxx, R-N.C., front right, with Reps. Luke Messer, R-Ind., from left, Cathy McMorris Rodgers, R-Wash., and John Kline, R-Minn., talk about student loans on Capitol Hill in Washington, Wednesday, July 31, 2013. (AP Photo/Manuel Balce Ceneta) (31 Jul 2013)

<<APPHOTO DCMC116 (07/31/13)££

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