Affordable Loans for Students Act

Summary

Affordable Loans for Students Act This bill sets the interest rate at 2% for new and existing federal student loans. (Currently, interest rates on federal student loans range from 6.53% to 9.08%, depending on the loan type.) Specifically, the bill directs the Department of Education (ED) to establish and implement procedures to modify the terms of federal student loans held by ED so the applicable rate of interest shall be 2% on the unpaid principal balance of the loan. ED must modify the interest rate without any action from the borrower. Additionally, ED must establish and implement procedures to (1) refinance eligible loans that are not held by ED (e.g., privately held Federal Family Education Loans and Perkins Loans) as consolidation loans, and (2) allow a borrower to opt out of this loan refinancing. The bill outlines the terms and conditions of these refinanced loans, including by prohibiting ED from charging origination fees and by setting the interest rate at 2% on these loans. The bill applies the 2% interest rate to new loans (i.e., federal student loans made beginning on the first July 1 after the bill's enactment) and also applies this rate retroactively to existing loans.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 10 March 2025

   Introduced

   Referred to the House Committee on Education and Workforce.

   Source: IntroReferral

2. 10 March 2025

   Introduced

   Introduced in House

   Source: IntroReferral

3. 10 March 2025

   Introduced

   Introduced in House

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

2 official files

• Introduced in House

  Introduced in House · EN · 10 March 2025

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 10 March 2025

  Open at official source

Sponsors

• Rep. Lawler, Michael [R-NY-17] · R · Sponsor
• Anna Paulina Luna · R · Sponsor
• Rep. Moskowitz, Jared [D-FL-23] · D · Sponsor
• Jefferson Van Drew · R · Cosponsor
• Mariannette Miller-Meeks · R · Cosponsor
• Rep. Figures, Shomari [D-AL-2] · D · Cosponsor
• · hsed00 · Standing

Related records

No cross-record relationships stored yet.