Future student loan payments after college graduation for this years incoming freshmen class just got lower. A congress that realized the future election payback of the furor caused by doubling student loan interest rates under sequestration made a deal. Both houses passed a student loan bill that was a slight increase over the 3.4% rate that ended June 30, 2013 up to 3.9%. This was a great improvement over the 6.8% rate undergraduate students would have faced.
Approximately 90% of legislators voted for the bill. The change of heart may have been due to the fact that legislators who had been happy to let loan rates double did not realize who student loan consumers are. The student loan interest rate increase would have disproportionately affected middle and upper income families who are heavy users of student loans for higher education.
If signed by the President, the new student loan rates will be:
Loan rates will be fixed over the life of the loan but will change for new borrowers each year. More details will be released by the US Department of Education once the bill is signed.