WASHINGTON, Ill. -- The President has signed a bill that will lower interest rates for student loans.
President Obama was surrounded by lawmakers from both parties as he used the usual array of pens to sign the student loans bill into law.
Rates on new subsidized Stafford loans doubled on July 1, when Congress could not agree on a way to keep them at the 3.4 percent rate.
The new measure will allow about 11 million students to have lower interest rates, saving the average undergraduate roughly $1,500 on interest charges this year.
The President praised both parties for their work on the bill, but said more needs to be done to reduce the overall cost of a college education.
“Even though we've been able to stabilize the interest rates on student loans, our job's not done because the cost of college remains extraordinarily high,” said President Obama. “It's out of reach for a lot of folks and those that do end up attending college the amount of debt that young people are coming out of school with is a huge burden on them, it's a burden on their families, it makes it more difficult for them to buy a home, it makes it more difficult if they want to start a business, it has a depressive effect on our economy overall and we've got to do something about it."
The new law links student loan interest rates to the financial markets.