Lawmakers are currently discussing how the bill will change even after its approval. (creative commons)

READ MORE: Senate Passes Compromise On Student Loan Bill

The bill, which links student loan interest rates to the financial markets, currently offers low rates for students, but will go higher if the economy improves as planned.

From USA Today: 

“Undergraduates this fall would borrow at a 3.9 percent interest rate for subsidized and unsubsidized loans. Graduate students would have access to loans at 5.4 percent, and parents would borrow at 6.4 percent. The rates would be locked in for that year's loan, but each year's loan could be more expensive than the last. Rates would rise as the economy picks up and it becomes more expensive for the government to borrow money.”

Representative John Kline spoke, "Changing the status quo is never easy, and returning student loan interest rates to the market is a longstanding goal Republicans have been working toward for years. I applaud my colleagues on the other side of the aisle for finally recognizing this long-term, market-based proposal for what it is: a win for students and taxpayers."

With negotiations on both sides, the House bill that passed has a preference to shift responsibility for interest rates to the financial markets. The changes made by the senate include a cap on raising interest rates as well as locking those rates down, which convinced many democrats to side with republicans on the decision. 

READ MORE: Federal Student Loan Interest Rates To Double On July 1st

Students should be aware that under this bill interest rates will not top 8.25 percent for undergraduates, graduate students will not pay rates higher than 9.5 percent, and parents' rates will top out at 10.5 percent. 

The bill is currently headed to President Obama for his signature of approval.

Reach Executive Producer Eric Parra here.