House Approves Lower Rates on Student Loans

By: The Associated Press Email
By: The Associated Press Email

WASHINGTON - 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.


Join the Conversation!

To comment, the following rules must be followed:

  • No Obscenity, Profanity, Vulgarity, Racism or Violent Descriptions
  • No Negative Community Comparisons
  • No Fighting, Name-calling, Trolling or Personal Attacks
  • Multiple Accounts are Not Allowed
  • Stay on Story Topic

Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.

Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to comments@kbtx.com. Please provide detailed information.

powered by Disqus
KBTX-TV Channel 3 4141 E. 29th Street Bryan, TX 77802 Phone: (979) 846-7777 Fax: (979) 846-1490 News Fax: (979) 846-1888
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 217873651 - kbtx.com/a?a=217873651