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.