The Senate Labor and Human Resources Committee unanimously approved legislation Wednesday that would cut the rate lenders may charge on government-guaranteed student loans.

The plan, included as part of a spending bill for higher education, is identical with one passed by the House Education Committee March 19. The legislation would cut the five-year average interest rate on these loans to 7%, from 7.8%. The reduction was already scheduled to take effect July 1 under a provision of a 1993 law.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.