However, the bill has provisions for rates to go higher in coming years. It is expected to become law, with support from the White House and the House of Representatives, which will likely take up the bill in coming days.
“This fall, all undergraduates, subsidized or unsubsidized, would only have to pay 3.86% interest rate for the life of the loan,” said Sen. Tom Harkin, an Iowa Democrat, whose support was key to a Washington deal. “That means real savings for borrowers.”
Source: CNN