'Republicans and Democrats worked hard to find common ground,' Mitch McConnell said. Student loan deal clears Congress

Congress on Friday signed off on a deal to halt an increase in student loan interest rates that could affect more than 7 million people — clearing the way for President Barack Obama’s signature.

Lawmakers moved quickly on Friday to end a legislative dispute that got caught up in politics on Capitol Hill and on the campaign trail, as Obama repeatedly blamed Congress for delaying and Republicans accused the president of being AWOL in negotiations.


But on Friday, Senate leaders touted the bipartisan cooperation in ultimately reaching the agreement, which came earlier this week.

“On the student loan issue, Republicans and Democrats worked hard to find common ground,” Senate Minority Leader Mitch McConnell (R-Ky.) said. “The agreement we’ve reached will ensure that college students, who are already facing enormous challenges in the Obama economy, won’t be paying higher interest rates next month.

“This has been an incredibly productive week,” said Senate Majority Leader Harry Reid (D-Nev.). “And it tops off a fruitful session.”

Republicans and Democrats broadly agreed the current 3.4 percent interest rate for certain federal loans should be extended for one more year, but sparred on where to find the $6 billion to pay for it. Without congressional action, the rate would have doubled to 6.8 percent in July, and the White House estimated that it would cost the average debtor $1,000 over the life of the loan.

Reid and McConnell agreed to pay for the program by shortening the amount of time certain students can receive a federal subsidy for their loans, and also by changing rules related to worker pensions.

“We are pleased that Congress has finally passed a bipartisan bill to stop student loan interest rates from doubling and put Americans to work rebuilding our nation’s roads and bridges,” White House press secretary Jay Carney said in a statement. “For months, President Obama has been calling on Congress to take up these two important priorities before middle class families pay the price for inaction.”

The student loan issue was lumped in with the transportation bill and reauthorization of the flood insurance program. The House approved it 373-52, and the Senate followed soon after with a 74-19 vote, with Sen. Olympia Snowe (R-Maine) voting present due to her husband’s ties to the education industry.