Lowering Student Loans Act

This bill would set the interest rate at 2 percent for federal Direct student loans, including Stafford, Unsubsidized Stafford, PLUS, and Consolidation loans, first disbursed or applied for on or after July 1, 2026. Existing Direct loans with rates above 2 percent would also drop to 2 percent starting July 1, 2026, unless the borrower opts out. The Department of Education would have to notify borrowers and loan servicers at least 90 days before July 1, 2026, and set up a process for complaints about errors or delays. The new rates would be fixed for the life of the loan, and borrowers with older FFEL consolidation loans could consolidate into Direct loans to get the 2 percent rate.

Full text and official record on Congress.gov

Sponsors

• Mike Thompson Democrat sponsor
• 2 cosponsors