[JURIST] US President Barack Obama [official profile] on Friday signed into law H.R. 1911, the Bipartisan Student Loan Certainty Act of 2013 [text], lowering interest rates on student loans. The interest rates will drop [AP report] to 3.86 percent for undergraduate students and 5.41 percent for graduate students. However, the bill ties the interest rates to fluctuations in the financial markets, so economic improvements will result in higher interest rates. The House of Representatives [official website] passed the legislation at the end of July, a week after the Senate [official website] passed its version. The new rates will apply retroactively to all student loans procured after July 1.

Obama has advocated for student loan reform throughout his presidency. In July 2012 Obama signed legislation [JURIST report] that prevented the interest rate on student loans from increasing and maintained jobs on infrastructure and transportation projects nationwide. In March 2010 Obama signed into law [JURIST report] a bill that removed banks and private lenders as providers for federal student loans and place that responsibility with the government. Obama declared that this reform would make the student loan system work for students rather than for banks and other lenders. Political opponents criticized the student loan legislation as being harmful to the economy.