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 AlexanderLamar AlexanderKey Republicans ask Trump to keep on NIH director McConnell tees up medical cures bill Speculation and starting points: accreditation, a new administration and a new Congress MORE (R-Tenn.), Richard BurrRichard BurrDems pledge to fight Sessions nomination Battle for the Senate: Top of ticket dominates Shakeup on Senate Intel: Warner becomes top Dem MORE (R-N.C.), Tom CoburnTom CoburnWill Trump back women’s museum? Don't roll back ban on earmarks Ryan calls out GOP in anti-poverty fight MORE (R-Okla.), Angus KingAngus KingAngus King: Trump's not draining swamp, he's adding alligators Overnight Cybersecurity: Last-ditch effort to stop expanded hacking powers fails Intel Dems push for info on Russia and election be declassified MORE (I-Maine) and Joe ManchinJoe ManchinTrump flirts with Dems for Cabinet Trump meets with Dem senator amid Cabinet speculation Overnight Energy: Walden wins Energy gavel | Trump looks at Dems to head Energy, Interior 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.