MALVEAUX: College students around the country are about to get a big break. Next hour, President Obama is going to be planning to sign a bill that will bring down the rates on student loans. Maribel Aber is joining us from New York to talk about when the law would kick in. What do we know about the rates as well?</s>MARIBEL ABER, CNN CORRESPONDENT: Hi there, Suzanne, Once Obama signs it the law kicks in immediately. Just in time for the coming school year. The law is retroactive back to July 1st. That's good news. That's when some rates doubled overnight jumping to 6.8 percent because Congress couldn't get a deal done in time. If you got a new loan in the past month at that higher rate, you're due for a reduction possibly down to 3.86 percent. That's the new interest rate for subsidized student loans for undergrads. More than seven million people will benefit. Graduate loans will be a bit higher. 5.14 percent, but could save families thousands. Students graduate with an average of $27,000 in loans.</s>MALVEAUX: What do we think after this year? Obviously, a political hot potato.</s>ABER: We think rates will likely go up. Here's why. There's going to be pegging that to financial markets. The 10-year treasury bond to be specific. When interest rates on bonds are low, like they are now, rates on loans will also be low -- Suzanne?</s>MALVEAUX: All right. Maribel Aber, thank you very much. We appreciate it. Everybody's going to be watching what happens with those student loans. Going to take a quick break. We'll be right back.
Students Getting Break on Loans.