WASHINGTON. - Friday evening, the House passed a bill that would extend low interest student loans for an extra year. The measure is a part of a broader transportation bill that extends transportation funds for two years as well as authorizes the government flood insurance agenda.
The $120 billion transportation package freezes for a year the interest rates for subsidized student loans. The bill freezes the 3.4% interest rate for all new loans from July 1 backed by the federal government. According to reports, the new law saves more than seven million students from being slapped with higher interest rates. In fact, the bill passed merely days before the student interest rates were to double.
The bill also includes a five-year extension to the National Flood Insurance Program and also increased funding for transportation infrastructure.
The Bill will be in effect till October 2014, when it will be up for renewal.
The bill passed with 373-52 vote, all dissenting voters were Republicans. President Obama is expected to sign the bill Saturday, before the July 1 deadline.
The law, which was passed Friday evening, is certainly another victory for the Obama administration, but it also highlights the importance (and need) of bipartisan support in the White House.
Jay Carney, the White House Press Secretary announced, "There is still much more Congress can do to create jobs and grow the economy, and the president will keep up pressure," as reported by the Wall Street Journal.
