PHOENIX — A deal that gives college students and parents lower interest rates on loans is heading for the desk of President Barack Obama for approval and a different president wants that bill to be signed.
“I don’t think members of Congress realize that the rest of the world is evolving,” said Arizona State University President Michael Crow. “We need things resolved quickly. Student loans are an important investment for kids to have a chance. Those who need the help should get the help. It’s important to have those interest rates as low as possible.”
Crow also said that the lack of urgency in Congress is affecting the decisions of both students and their families.
The bipartisan compromise links student loan interest rates to the financial markets. Undergrads would borrow at 3.9 percent this fall. Graduate students would have access to loans at 5.4 percent and parents would be at a borrowing rate of 6.4 percent.
The White House said Congressional approval of the new loan structure would save the average undergrad at $1,500 dollars in interest charges.