UPDATED: Fri 9:36 PM, Aug 09, 2013
WASHINGTON (AP) -- Students heading back to college this fall will save thousands in interest charges on their loans after they graduate once President Barack Obama signs into law a rare bipartisan compromise.
The president is scheduled to sign the deal Friday at the White House, ending a frenzied summer of negotiations to restore lower interest rates before millions of college students move back into the dorms.
About 11 million students this year are expected to have lower interest rates, the average undergraduate saving $1,500 on interest charges on this year's loans.
The legislation links student loan interest rates to the financial markets. It restores lower rates this fall but could yield higher costs if the economy improves in the years ahead.
Undergraduates this fall would borrow at a 3.9 percent interest rate.
ORIGINAL STORY: Thurs 1:32 PM, Aug 08, 2013
WASHINGTON (AP) -- The bipartisan bill has been awaiting Obama's signature since earlier this month, when the House gave it final congressional approval after a drawn-out process to reach a compromise in the Senate.
The bill links student loan interest rates to the financial markets. It would offer lower rates for most students now, but higher ones down the line if the economy improves as expected.
White House spokesman Jay Carney says Obama will sign the bill in a ceremony at the White House. He says in the coming months, Obama will lay out an aggressive plan to reduce costs for college students.
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