Fixed interest rates for student loans will soon be a thing of the past. Last week the House joined the Senate in passing a proposal that would link student loan interest rates to the financial market. According to a recent Bloomberg news article, this means “9 million undergraduates will pay 3.86 percent on their next loan.”
The passage of this bill means that the “380,000 Illinois undergrads getting ready to take out federal loans will see their interest rates drop by 3 percent as a result,” U.S. Senator Dick Durbin (D-IL) said in a July 26th press release, after the Senate approved the measure. The bill is expected to be signed into law by President Barack Obama this month. While student savings could begin as early as this fall, not everyone is lauding the student loan deal.