Reps. Mike Lawler, Anna Paulina Luna, and Jared Moskowitz have introduced the Affordable Loans for Students Act in Washington, D.C. The legislation aims to reduce federal student loan interest rates to 2%. It proposes retroactive application of this rate to existing loans and empowers the Department of Education to adjust and refinance these loans automatically. Borrowers will have the option to opt-out if they choose.
The act also allows refinancing of other student loans into Part D loans and provides an option for borrowers with multiple outstanding Part D loans to consolidate them. Additionally, it mandates a report detailing the number of borrowers affected by these changes and those delinquent in payments over the past year.
“This is a game-changer for millions of Americans looking to build a better future without the weight of overwhelming student loan debt holding them back,” said Congressman Mike Lawler. He emphasized that adjusting rates retroactively offers borrowers needed flexibility.
Congresswoman Anna Paulina Luna criticized high interest rates for extending repayment periods unnecessarily, stating that “the federal government should not be putting strain on its students and young graduates for profit.”
Congressman Jared Moskowitz highlighted how interest burdens hinder financial progress for many families. He noted bipartisan support for addressing this issue through legislation capping rates at 2%.
The Affordable Loans for Students Act has backing from organizations such as the National Association of Student Financial Aid Administrators, the American Council on Education, and the American Association of Colleges and Universities.
