Now both houses of Congress have passed a compromise bill lowering a recent interest rate hike on student loans. Under the new legislation, which will now move to President Obama's desk, politicians will no longer be responsible for setting the rates.
AP Photo/Manuel Balce Ceneta
U.S. college students will likely pay a reduced interest rate of 3.86 percent on their student loans for the new school year, after lawmakers on Wednesday finally passed a compromise bill that would reverse a recent rate hike.
The House of Representatives voted 392-31 in support of a bipartisan deal to lower interest rates on millions of new federal student loans. The Senate passed the bill on July 24 and President Barack Obama is expected to sign it into law.
The action followed months of partisan bickering, with Democrats and Republicans blaming each other for a politically embarrassing delay that had the potential to cost students and their parents thousands of dollars.