On July 31, the House of Representatives approved HR 1911, altering the interest rates for all Federal student loans first disbursed after July 1, 2013. The bill now awaits the President's signature.
Under the terms of HR 1911, interest rates would be adjusted every July 1, based on the 10-year Treasury Note rate, with a cap to protect borrowers from rising interest rates. The new rates will be effective for new loans made between July 1 and June 30 of each fiscal year, and will be fixed for the life of the loan. Once enacted, these rates will be applied retroactively to loans that have been disbursed since July 1, 2013.