Obama to Sign Student Loan Bill Today; Short-Term Relief, Long-Term Uncertainty

By: Eric Long

At 2pm ET today, President Obama is set to sign the bipartisan student loan bill that will keep subsidized Stafford loan interest rates low this year. The bill temporarily lowers interest rates for 11 million college students this fall but ties the rates with the 10-year Treasury note.  This could lead to rates increasing up to 8.25% in the future.

Read Jubilee USA’s statement on the bill here and read more on our blog:

• Congress Compromises on Student Loan Interest Rates; Sent to Obama (August 5, 2013)
• Sobering Stats: Federal student loan debt tops $1 trillion, more than credit card debt (July 17, 2013)
• Congress Fails. Goes on Holiday While Rates Double for 7mn College Students (July 1, 2013)
• Jubilee for Students: A Weekend of Action and Prayer for our Youth’s Future (June 19, 2013) 

 

Photo Caption: President Obama signing the student loan bill in 2012 that prevented interest rates on subsidized Stafford student loans from doubling that year.

Photo Credit: Molly Riley/EPA