This past Friday, President Barack Obama signed the Higher Education Act into law, an act that the AP reports restored lower interest rates. The President also pledged to continue lowering the costs of a college education.
"Feels good signing bills. I haven't done this in a while," President Obama said, praising both Democrats and Republicans from the Oval Office. The President was thrilled that the dueling parties could agree on what he felt was a prudent plan of action to tackle the student loan crisis.
House Speaker John Boehner (R-OH) described the meeting as "a good day... with the stroke of a pen, we've now officially taken the politics out of student loans... By linking interest rates to markets, this law — part of the Republican jobs plan — means students will see lower rates and won't have to worry about Washington suddenly making it harder to pay for their education."
The new legislation attaches student loan interest rates to the financial markets, permitting the government to borrow money more cheaply, and allowing economic improvement to take place without government borrowing placing an added burden on the students.
The AP also reports that interest rates will not rise above 9.5 percent for grad students, 8.25 percent for undergrads, and 10.5 percent for parents; such rates would not even be applicable for at least another ten years, however.
Twitter has rejoiced at the occasion:
Obama signed that student loan bill! Praise Jesus!!!
— D|R (@DearDevvy) August 10, 2013
— Wane Shages (@ShaneRages) August 10, 2013
By signing a bipartisan student loan bill today, Pres. Obama put college back within reach for millions of America's students & families.
— Nancy Pelosi (@NancyPelosi) August 9, 2013
The Higher Education Act will directly affect 18 million loans affecting about $106 billion in student loan debt, and the Congressional Budget Office has estimated that the bill would even have a small impact on our national deficit, even if it is only a paltry $715 million over the next 10 years.