President Obama will sign legislation lowering interest rates on federal-backed student loans on Friday, according to the White House.

"This is a bill that passed with wide majority support on both sides of the aisle and will save millions of students an average of $1,500 on loans they take out this year," White House press secretary Jay Carney said Thursday.

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The bill passed in the House on a 392-31 vote, setting most student loans at the rate of the 10-year Treasury note plus 2.05 percent. Loan rates would be capped at 8.25 percent.

Earlier this summer, Congress failed to strike a deal preventing rates from doubling from 3.4 percent to 6.8 percent. The borrowing rates had been temporarily set at the lower level since 2007, with Congress extending it several times, the latest of which lapsed earlier this summer. When the White House and congressional negotiators first attempted to hammer out a long-term fix, they were unable to strike a deal.

But after returning from the July 4 break, a bipartisan group of lawmakers led by Sens. Lamar AlexanderAndrew (Lamar) Lamar AlexanderTrump to make ObamaCare payments to insurers for August CBO: ObamaCare premiums could rise 20 percent if Trump ends payments CBO to release report Tuesday on ending ObamaCare insurer payments MORE (R-Tenn.), Richard BurrRichard Mauze BurrSenate chairman hopes to wrap up Russia investigation this year Lawmakers seek to interview Trump secretary in Russia probe Senate Dem wants closer look at Russia's fake news operation on Facebook MORE (R-N.C.), Tom CoburnTom CoburnAl Franken: 'I make fun of the people who deserved it' The more complex the tax code, the more the wealthy benefit Congress, stop using our nation's military policy for political purposes MORE (R-Okla.), Angus KingAngus Stanley KingSen. King: If Trump fires Mueller, Congress would pass veto-proof special prosecutor statute Senate heading for late night ahead of ObamaCare repeal showdown Overnight Healthcare: Four GOP senators threaten to block 'skinny' repeal | Healthcare groups blast skinny repeal | GOP single-payer amendment fails in Senate MORE (I-Maine) and Joe ManchinJoe ManchinOPINION | 5 ways Democrats can win back power in the states Trump's Democratic tax dilemma Manchin eyed as potential pick for Energy secretary: report MORE (D-W.Va.) were able to use a bill championed by House Republicans as the framework for new legislation, which then quickly moved through both chambers.

Carney said that the president would continue to work on college affordability issues in the coming months.

"Even with this important bill signed into law, much work remains to ensure college stays within reach for middle-class families and those striving to get into the middle class," Carney said.