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 AlexanderWeek ahead: Lawmakers near deal on children's health funding Ryan suggests room for bipartisanship on ObamaCare Time to end fiscal year foolishness MORE (R-Tenn.), Richard BurrRichard Mauze BurrNSA spying program overcomes key Senate hurdle Senate Intel chairman: No need for committee to interview Bannon McConnell: Russia probe must stay bipartisan to be credible MORE (R-N.C.), Tom CoburnThomas (Tom) Allen CoburnRepublicans in Congress shouldn't try to bring back earmarks Republicans should know reviving earmarks is a political nightmare Former GOP senator: Trump has a personality disorder MORE (R-Okla.), Angus KingAngus Stanley KingMcConnell to Dems: Don't hold government 'hostage' over DACA Overnight Regulation: Regulators kill Perry plan to help coal, nuke plants | Senate Dems to force net neutrality vote | Maine senators oppose offshore drilling plan | SEC halts trading in digital currency firm Maine senators oppose Trump's offshore drilling plans MORE (I-Maine) and Joe ManchinJoseph (Joe) ManchinMcConnell to Dems: Don't hold government 'hostage' over DACA Lawmakers see shutdown’s odds rising Senate campaign fundraising reports roll in 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.