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.

ADVERTISEMENT
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 AlexanderLamar AlexanderHELP Committee won't hold second hearing for DeVos Trump, GOP set to battle on spending cuts Senate committee vote on DeVos postponed MORE (R-Tenn.), Richard BurrRichard BurrWant to streamline government? Start with the Pentagon. Senators introduce dueling miners bills Trump education pick to face Warren, Sanders MORE (R-N.C.), Tom CoburnTom CoburnCoburn: Trump's tweets aren't presidential The road ahead for America’s highways Rethinking taxation MORE (R-Okla.), Angus KingAngus KingIn Energy hearing, Rick Perry capitulated to Big Gov on all fronts Overnight Finance: Scoop – Trump team eyes dramatic spending cuts | Treasury pick survives stormy hearing Overnight Energy: Perry makes his case to lead Energy Dept. | Dems alarmed by spending cut plans MORE (I-Maine) and Joe ManchinJoe ManchinOvernight Cybersecurity: Dems split on Manning decision | Assange looking to make deal What we learned from Rick Perry's confirmation hearing Manning commutation sparks Democratic criticism 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.