House passes student loan deal, bill goes to Obama

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The House approved a measure Wednesday to link interest rates on student loans to financial markets, sending the compromise legislation to the president’s desk after a lengthy back-and-forth between Congress and the White House.

The vote was 392-31.

President Barack Obama is expected to sign the legislation into law.

The move will reduce student loan rates in the short term — after they doubled on July 1 to 6.8 percent.

That interest rate now drops to 4.6 percent under the new bill.

But critics say the deal could result in increases to the interest rates each subsequent year as the economy improves.

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