Finally something good out of this administration.

House passes student loan bill

Syracuse (WSYR-TV) - A bill on student loan rates was approved by the US House of Representatives on Wednesday.

The house voted 392 to 31 to approve the measure that will roll back the rate that doubled to 6.8 percent on July 1.

The bill applies to Stafford loans, which are given by the U.S. government to help finance a college education.

Undergraduate students will pay an interest rate of 3.86 percent on their loans. It is comprised of the yield on the 10-year U.S. Treasury note on June 1, plus an additional 2.05 percent.

Graduate students will pay 5.41 percent on loans, or 3.6 percent over the 10-year Treasury.

If rates on Treasury notes rise, so will student loan rates under the new deal.

The bill has provisions built-in to protect students if bond yields were to spike.

Loans for undergraduates will be capped at 8.25 percent and for loans for graduates will be capped at 9.5 percent.

The new rates apply to loans taken out after July 1, 2013.

The bill will now go to President Obama for his signature.