The House of Representatives passed a bill July 31 that will reduce the costs of taking out loans for many students attending universities in the United States.
Students attending California Baptist University will save a substantial amount of money this fall because of the bipartisan compromise reached this summer.
Undergraduate students will be able to borrow loans at 3.9 percent for the school year. Additionally, graduate students will be able to borrow at 5.4 percent and parents at 6.4 percent.
At CBU, students often utilize subsidized and unsubsidized loans. The decrease of interest rate lightens the financial weight that students carry.
Darren Meisel, director of undergraduate admissions at CBU, said, “There is a good chance that the decrease in interest rates will have a positive impact on enrollment at California Baptist University, as students and families learn about the changes.”
The Huffington Post said around 11 million students will be affected by the decrease and it will save the average undergraduate $1,500 for the year.
Ryan Rotundo, a graduate student at CBU, said, “If lowering the interest rate for student loans allows people that would not have been able to afford college by themselves before, then it is beneficial to society.”
For the time being, the rates have been lowered to allow more opportunities for students attending a university.
The bill now goes to President Obama for his signature.