College students can breathe a little easier as they head back to school.  That is because Republicans and Democrats in Congress recently came together and agreed on long-term, market-based student loan reform that took politicians out of the student loan interest rate equation. The measure -- which we originally passed in the Republican-led House of Representatives in May -- will strengthen federal student loan programs and serve the best interests of students and their families.

Earlier this year, the President himself called for a market-based rate, and we responded in the House of Representatives by passing a bill, which did just that -- the Smarter Solutions for Students Act. I am glad the Senate followed our lead in the House and approved legislation largely similar to the Smarter Solutions for Students Act. Our college students deserve student loan rates that cannot be used as bargaining chips in Washington politics. 

Specifically, the student loan agreement:

-Strengthens federal student loan programs by implementing a permanent, market-based interested rate. Locks in the interest rate for students at origination, for the life of the loan.

-Resets student loan interest rates once a year, allowing rates to move with the free market and ensuring borrowers can take advantage of lower interest rates when available. 

-Calculates subsidized and unsubsidized Stafford loans using a formula based on the 10-year Treasury Note, plus 2.05 percent. 

-Protects borrowers in high interest rate environments by including an 8.5 percent cap on Stafford Loan interest rates and a 10.5 percent cap on PLUS loans.

-Provides stability for low- and middle-income students working to finance their postsecondary education, and prevents future uncertainty about whether Congress is going to act in time to change the interest rate.

If you have any questions about this or any other federal issues, please feel free to contact my office in Washington D.C. at (202) 225-2015, in Hilliard at (614) 771-4968, in Lancaster at (740) 654-2654, or in Wilmington at (937) 283-7049.