A Republican bill with 3 Democratic cosponsors · See all 7 cosponsors
Last activity — Referred to the House Committee on Education and Workforce.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill is called the Affordable Loans for Students Act. It changes the Higher Education Act of 1965 to lower the interest rate on federal student loans to 2 percent. The Secretary of Education will automatically modify eligible federal loans held by the government to have a 2.0 percent interest rate. It also sets up procedures to refinance eligible federal loans not held by the government into Federal Direct Consolidation Loans at a 2.0 percent interest rate without requiring borrower action, though borrowers can opt out. Additionally, the bill sets the interest rate to 2.0 percent for new federal direct loans disbursed on or after the first July 1 following the enactment of the Act. Finally, the Secretary of Education must submit annual reports to authorizing committees regarding the number of modified or refinanced loans and borrower delinquency rates.
Yes· 3 of 27
- Scored +9
Would students be better off under this?
The bill is explicitly designed to make student loans more affordable for current and future students.
- Scored +9
Does this reduce what student borrowers owe or repay?
The bill provides direct relief by drastically lowering interest rates for existing and future borrowers.
- Scored +8
Would people in their twenties and thirties be better off under this?
Young adults entering or currently in higher education will benefit greatly from lower interest rates.
The opposite
- Scored -5
Does this reduce what the federal government owes?
Lowering interest rates on federal loans increases federal outlays and could negatively impact the national debt.
- Scored -5
Does this reduce what the federal government spends?
The bill effectively increases government expenditure through reduced interest revenue.
- Scored -3
Does this make the government pay for what it commits to?
Reducing interest rates on existing liabilities represents a departure from standard fiscal return considerations.
Who it would affect, and how
Potential Positive Impacts for People
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Lower interest rates on existing government-held loans: Under Section 3(a), adding Section 460A(a), the Secretary of Education will automatically modify eligible federal student loans held by the Secretary so that the interest rate becomes 2.0 percent on the unpaid principal balance. This is positive because borrowers will pay less interest on their loans without needing to take any action.
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Refinancing for non-federal loans: Under Section 3(a), adding Section 460A(b)(1) and (2), the Secretary will establish procedures to refinance eligible federal loans not held by the Secretary into Federal Direct Consolidation Loans at a 2.0 percent interest rate. This allows borrowers with loans not held by the Secretary to also benefit from the 2.0 percent rate.
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No origination fees for refinanced loans: Under Section 3(a), adding Section 460A(b)(3)(B), the Secretary cannot charge an origination fee for loans made under the refinancing subsection. This is beneficial because borrowers will not face extra fees to get their loans refinanced.
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Lower interest rates for future student loans: Under Section 4, amending Section 455(b)(8) by adding subparagraph (F), new Federal Direct Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Consolidation Loans first disbursed on or after the first July 1 following enactment will have an interest rate of 2.0 percent. This helps future students borrow money for school at a lower cost.
Potential Negative Impacts for People
Based on the provided text, there are no specific provisions identified that cause negative consequences or burdens for individuals or groups of people.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would students be better off under this? — The bill is explicitly designed to make student loans more affordable for current and future students. Would people in their twenties and thirties be better off under this? — Young adults entering or currently in higher education will benefit greatly from lower interest rates. Would households on low incomes be better off under this? — Reduced debt servicing costs provide significant relief to low-income households with student loans. Would veterans be better off under this, taking everything together? — Veterans holding eligible federal loans will receive significant interest rate reductions. Would middle-income households be better off under this? — Middle-class borrowers will benefit from reduced overall interest obligations. Would Black Americans be better off under this? — Decreased student debt can help address wealth disparities often faced by African American borrowers. Would Hispanic Americans be better off under this? — Decreased student debt can help address wealth disparities often faced by Hispanic American borrowers. Would people in middle age be better off under this? — Middle-aged individuals with existing student debt will see reduced monthly payments. Would Asian Americans be better off under this? — Reduction in student loan interest provides financial relief to this demographic. Would men be better off under this? — The bill provides financial relief to men with student debt. Would Native Americans be better off under this? — Reduction in student loan interest provides financial relief to this demographic. Would people with disabilities be better off under this? — Lower debt servicing may assist individuals living on fixed or limited incomes due to disability. Would white Americans be better off under this? — Reduction in student loan interest provides financial relief to this demographic. Would women be better off under this? — The bill provides financial relief to women who are often disproportionately affected by student debt. Would high-income households be better off under this? — Wealthier borrowers with high student debt levels also benefit, though the impact is proportionally lower. Would retired people be better off under this? — Retirees with remaining loan obligations may benefit from reduced interest payments.
- Education And Technology
- Does this reduce what student borrowers owe or repay? — The bill provides direct relief by drastically lowering interest rates for existing and future borrowers. Does this make college cost less? — Lowering interest rates to 2% significantly reduces the total cost of higher education for many students.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The bill provides significant financial relief and protection for student borrowers against high interest rates. Is this likely to grow the economy? — Lower student debt servicing costs can increase discretionary income for graduates, potentially boosting economic activity. Does this reduce what the federal government spends? — The bill effectively increases government expenditure through reduced interest revenue. Does this reduce what the federal government owes? — Lowering interest rates on federal loans increases federal outlays and could negatively impact the national debt. Does this make the government pay for what it commits to? — Reducing interest rates on existing liabilities represents a departure from standard fiscal return considerations.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Reducing interest payments can increase the disposable income of low-income earners with student debt. Does this narrow racial gaps in how people are treated? — Reducing student debt burdens can disproportionately benefit minority groups who face higher debt-to-income ratios. Does this make housing cost less? — Lower debt burdens may indirectly improve long-term housing affordability for graduates. Is this likely to reduce homelessness? — Reducing debt obligations can provide a buffer against financial crisis and potential homelessness.
- Governance And Ideology
- Does this give the federal government more power? — The bill expands the scope of federal intervention in student loan interest rates. Does this make what the government does easier for the public to see? — The bill requires annual reports on loan modification and delinquency rates.
- National Security And Foreign Policy
- Does this increase the pay, pensions or support veterans receive? — Veterans with student loans will benefit from the reduced interest rates.
- 9/24/2026
- 1 Cosponsor added.
- 9/8/2026
- 1 Cosponsor added.
- 8/24/2026
- 1 Cosponsor added.
- 1/22/2026
- 1 Cosponsor added.
- 9/15/2025
- 1 Cosponsor added.
- 3/10/2025
- Referred to the House Committee on Education and Workforce.
- 2 Cosponsors added.
- Introduced in House
Shomari FiguresDemocrat · Alabama
Anna Paulina LunaRepublican · Florida
Mariannette Miller-MeeksRepublican · Iowa
Jared MoskowitzDemocrat · Florida
Josh RileyDemocrat · New York
Maria SalazarRepublican · Florida
Jefferson Van DrewRepublican · New Jersey