Student Loans: Interest Rate Cap at 2%
A house committee must act next: committee consideration.
Even with bipartisan support, the high cost of lowering interest rates makes it difficult to pass through a divided Congress.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Students taking out new federal Stafford, PLUS, or consolidation loans after the effective date would automatically get a 2 percent interest rate instead of current market-based rates, which have recently run several points higher. This would lower the long-term cost of borrowing for college for future students and their families.
“for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans for which the first disbursement is made, or the application is received, on or after the first July 1 after the date of enactment of the Affordable Loans for Students Act, the applicable rate of interest shall be 2.0 percent”
Referred to the House Committee on Education and Workforce.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Affordable Loans for Students Act
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