Bill that lowers student loan rates passes

Author:
Updated:
Original:

A bipartisan bill that cuts the cost of borrowing for the nation's college students is awaiting President Obama's signature.

The Associated Press reports that the House on Wednesday approved legislation linking student loan interest rates to the financial markets. The new loan structure will offer lower rates to 11 million collegiate borrowers and save the average undergraduate $1,500 in interest.

The legislation has been championed by Minnesota Rep. John Kline, chairman of the House Committee on Education and the Workforce.

"I applaud my colleagues on the other side of the aisle for finally recognizing this long-term, market-based proposal for what it is: a win for students and taxpayers," the 2nd District Republican said.

Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized Stafford loans. Rates would rise as the economy improves and it becomes more costly for the government to borrow. The bill links interest rates to 10-year Treasury notes and removes Congress' annual role in determining rates.

Next Up

Grand casino

Grand Casino celebrates 30th anniversary with more than cake

Hundreds of thousands of winning dollars are on the table.

Brodd defense witness

As defense starts, expert argues Chauvin's use of force was reasonable

Use-of-force expert Barry Brodd testified on behalf of the defense.

Chet Holmgren

Chet Holmgren named Minnesota's Mr. Basketball

Minnehaha Academy produces back-to-back award winners for the second time in state history.

Byron Buxton

Red Sox out-slug Twins in chilly matinee

Bobby Dalbec hit two RBI doubles to hand the Twins their third straight loss.

Governor Tim Walz

As CDC urges Michigan to shut down, Gov. Walz watches closely

Walz says there are no imminent plans to dial back.

ambulance

Man, 26, collapses and dies at event center shortly after altercation

The incident was reported Saturday night in Stearns County.

Allina Crossroads Campus

Allina Health will reopen Buffalo clinic after fatal mass shooting

A timeline about when the clinic will reopen hasn't been released.

Related