In an overwhelming 356 to 71 vote yesterday, the House approved a bill to slash interest rates on federal student loans, a measure that could save students over $2,000 by the end of their loan. But don’t celebrate just yet. The bill won’t go into full effect until 2011, when it will expire unless renewed by Congress. The pricey legislation will also pose a challenge for the Democrats’ pay-as-you-go pledge.

Senator Edward Kennedy plans to consider the measure as a part of broader legislation to handle rising higher education costs. However, the Senate has not yet voted on the bill and President Bush vocally opposes it. The White House released a statement Tuesday warning that the bill would increase student borrowing: “encouraging more student debt can also fuel today’s upward tuition spiral.” Can’t fight that logic.

According to Democratic estimates, the plan could nearly double the $2,300 in savings for borrowers if the cut becomes perminant. Time, however, will tell.