WASHINGTON, N.Y. -- Congress passed a bill on Friday that would prevent interest rates from doubling on new student loans.
The measure includes six billion dollars to prevent rates on student loans from doubling.
The bill passed overwhelmingly in both the House and the Senate. If no action were taken, interest rates on new Stafford loans would have jumped to 6.8 percent on Sunday.
The bill extends the current 3.4 percent rate for a year, saving an average of 7.4 million students an average of $1,000 over the life of the loan.
The bill now heads to the to the Oval Office for President Obama to sign. The student loans package is tied to a $100 billion spending plan for highway and mass transit construction and repairs.