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- August 9, 2013 - 7:02 AM
U.S. Rep. John Kline will fly back to D.C. today to witness President Obama sign legislation lowering interest rates on federal student loans.
Earlier this summer, Congress failed to reach a deal to prevent rates from doubling from 3.4 percent to 6.8 percent. The borrowing rates had been temporarily set at the lower level since 2007, with Congress extending it several times.
When the White House and congressional negotiators first attempted to find a long-term fix this summer, they were unable to strike a deal. After returning from the July 4 break, a bipartisan group of lawmakers used a bill written by Kline as the framework for new legislation, which then quickly moved through the House and Senate.
Under the agreement, federal student loans will be calculated and fixed to interest rates on the 10-year Treasury bill. The legislation will offer lower borrowing rates to students now, including 3.85 percent for undergraduates, but higher ones down the road as the economy improves.
Congress is on recess until after Labor Day.