U.S. House passes bill lowering student loan interest rates

U.S. House passes bill lowering student loan interest rates

PanARMENIAN.Net - The U.S. House of Representatives passed a bill that would reverse a recent hike in federal student loan interest rates, lowering them to 3.86 percent for undergraduates in the new school year, Reuters reported.

The House voted 392-31 in favor of the bill that will switch interest rates to a market-based system.

The bill pegs interest rates on student loans to the 10-year Treasury note plus 2.05 percentage points for undergraduates, and plus 3.6 percentage points for graduate loans. That means rates will initially be low for new borrowers but could go up if the economy improves.

Interest rates on student loans automatically doubled on July 1 to 6.8 percent from 3.4 percent after Congress failed to meet the deadline to prevent the rate increase.

Congress has since sought a retroactive fix that would keep new borrowers from paying the higher rate.

The bill, a result of extensive negotiations in mid-July among a coalition of U.S. senators composed of Democrats, Republicans and an independent, now waits to be signed into law by President Barack Obama.

 Top stories
The political leader of Iraq's Kurds earlier appealed for international military aid to help defeat the Islamist militants.
Hassan Rouhani said his government will continue his policy of moderation and "constructive engagement" with the West.
Ekmeleddin Ihsanoglu visited the town of Soma, which in May was the scene of Turkey's worst ever mining disaster.
The embassy staff were evacuated to neighboring Tunisia "due to the ongoing violence, the U.S. State Department said.
Partner news
Soghomon Tehlirian assassinated Talaat Pasha on March 15, 1921

Operation Nemesis was a covert operation by the Armenian Revolutionary Federation carried out from 1920 to 1922, during which a number of former Ottoman political and military figures were assassinated for their role in the Armenian Genocide.