Bill to lower student loan rates heads to Obama

WASHINGTON — A bipartisan bill that would lower the costs of borrowing for millions of students for now is awaiting President Barack Obama’s signature.

The House on Wednesday gave final congressional approval to legislation that links student loan interest rates to the financial markets. The bill would offer lower rates for most students now, but higher ones down the line if the economy improves as expected.

Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized Stafford loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that year’s loan, but each year’s loan could be more expensive than the last.

Rates would rise as the economy picks up.