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House approves bill to stabilize student-loan rate

January 29, 2002

The U.S. House of Representatives gave its approval on Thursday, Jan. 24, to S-1762, a bill approved by the U.S. Senate in December. If signed by President Bush as expected, the legislation will change the interest rate charged to borrowers of student loans from a variable rate based on market conditions to a fixed rate of 6.8 percent. Currently, lenders can charge up to 8.25 percent. The bill will go into effect July 1, 2006.