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
"It will be broken and defeated, just as all your previous campaigns were broken and defeated," Abu Muhammad al-Adnani said.
The team said they had also been barred from completing work at some sites to which they had been initially admitted.
"The terrorist organization Islamic State is a threat to public safety in Germany as well," said Interior Minister Thomas de Maiziere.
Until recently, India had largely seen itself as beyond the recruiting territory of international jihadists like al Qaeda.
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.