The House of Representatives passed a bipartisan bill to reform student loans in the Senate, with Democrats voting along party lines to send it to President Donald Trump for his signature.
The bill would overhaul the student loan servicing industry, end federal student loan interest rates, lower the debt-to-income ratio and require the federal government to collect payments from borrowers.
It is the first major legislation of its kind since the 2008 financial crisis.
The legislation would also require the government to return over $1 trillion in student loan payments to borrowers, with the interest on the payments reduced to 3 percent from 4.25 percent, the maximum allowed under the law.
President Donald Trump said the bill was “an important first step toward a sustainable debt-free future for our children and our grandchildren,” but noted that he is still reviewing the bill.
House Democrats voted along party line to send the bill to the president.
Republicans are expected to vote on the bill before Christmas.
Senate Democrats are set to begin debate on the legislation on Thursday, after which the bill will likely be sent to the White House for his approval.