Obama signs bipartisan student loan bill into law
President Barack Obama Friday signed into law a bipartisan student loan bill which the House overwhelmingly approved late week.
The Senate OK’d the measure by a vote of 81 to 18 two weeks ago.
Under the new law, the government establishes variable interest rates on Stafford loans for undergraduate college students, but caps the rate at 8.25 percent. The variable rate each year will be pegged to the rate on 10-year Treasury notes, plus 2.05 percent.
The law also sets the interest rate on loans issued to graduate or professional students at the rate on high-yield 10-year Treasury notes plus 3.6 percent, but caps that rate at 9.5 percent.
The law applies to loans made on or after July 1.