A bipartisan bill connecting student loan rates with financial markets has made its way to the desk of President Barack Obama for his signature, the Huffington Post reported.

The student loan rate reform would immediately lower the cost of borrowing money for school, but as the economy recovers, the rates would go up. The bill is also just part of a wider overhaul planned by lawmakers to curb rising college costs.

"This is a win for students and taxpayers," said Rep. John Kline, the Republican chairman of the House Committee on Education and the Workforce.

Rep. George Miller (D-Calif.), the leading Democrat on the committee joined Kline on the House floor to convince others to back the bill as well.

"It saves students and families money," he said.

Rates for this fall will be locked for the year at 3.9 percent for undergraduates, 5.4 for graduate students and 6.4 for parents. As the economy is expected to improve over the coming years, those rates would only increase.

The bipartisan bill passed the Senate 81-18 represented a compromise between Democrats and Republicans. Instead of the rates fluctuating constantly, Republicans agreed to lock in the interest rates for the full year of their existence, which convinced the Democratic voters to sign on.

"Campaign promises and political posturing should not play a role in the setting of student loan interest rates," Rep. Virginia Foxx, (R-N.C.) said. "Borrowers deserve better."

There has also been a cap set on how the rates can climb. For undergrads, the interest cannot top 8.25 percent, 9.5 for graduate students and 10.5 for parents. Congressional Budget Office estimates predict rates will not be that high within the next ten years.

"The bottom line is that students will pay more under this bill than if Congress did nothing, and low rates will soon give way to rates that are even higher than the 6.8 percent rate that Congress is trying to avoid," said Chris Lindstrom, higher education program director for the consumer group US PIRG.

The White House endorsed the compromise after disagreement among lawmakers resulted in Stafford loan rates doubling from 3.4 percent to 6.8 percent. The new bill would benefit 11 million people right away and save the average undergrad about $1,500 each.