Legislation signed by President Barack Obama in 2013 lowered student loan interest rates, but borrowers should expect rates to rise in 2014.

3 Potential Student Loan Changes to Eye in 2014

Higher interest rates may be on the horizon for federal loans in the 2014-2015 school year.

Legislation signed by President Barack Obama in 2013 lowered student loan interest rates, but borrowers should expect rates to rise in 2014.
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The bill would also require colleges with higher than average default rates to ramp up their counseling to include financial literacy and budgeting.

"This is a very solid piece of legislation," says Kantrowitz, who notes that the bill has enough bipartisan support to be included in reauthorization of the Higher Education Act, which expires at the end of 2014.

Whether Congress can come together to pass a new iteration of the Higher Education Act this year is still a big question mark, he says.

"The last reauthorization was originally supposed to occur in 2002," Kantrowitz says. "They passed 13 extension bills until it was finally passed in 2008, and this Congress is at least as contentious."

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Corrected on : Corrected 1/15/14: A previous version of this article misstated the name of the New America Foundation.