WASHINGTON (AP) - Students heading back to college this fall will save thousands in interest charges on their loans after they graduate once President Obama signs into law a rare bipartisan compromise.
The president is scheduled to sign the deal Friday at the White House, ending a frenzied summer of negotiations to restore lower interest rates before millions of college students move back into the dorms.
About 11 million students this year are expected to have lower interest rates, the average undergraduate saving $1,500 on interest charges on this year's loans.
The legislation links student loan interest rates to the financial markets. It restores lower rates this fall but could yield higher costs if the economy improves in the years ahead.
Undergraduates this fall would borrow at a 3.9% interest rate.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)