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WASHINGTON (AP) President Barack Obama is applauding a bipartisan Senate vote to make it less expensive for college students to borrow money for classes, housing and books.

Obama calls the compromise a major victory for American students. He says in a statement that it meets his principles, including locking in low rates next year and not overcharging students to reduce the deficit.

Obama is urging the House to pass the bill quickly. He says he hopes Congress will build on this progress by taking other steps to reduce educational costs.

The White House-backed proposed passed on Wednesday would link interest rates on federal student loans to the financial markets. That means student loans for the next few years would have lower interest rates, but interest rates could soon start climbing.