Rockland Reporter

Today, Congressman Mike Lawler from New York's 17th Congressional District introduced the Affordable Loans for Students Act. This bipartisan bill aims to reduce the interest rate on federal student loans to 1%. The proposed legislation would also retroactively apply this adjustment to existing loans and allow the Department of Education to automatically modify and refinance these loans without requiring borrowers to opt-in. Borrowers can choose to opt out if they prefer.

The bill includes provisions for refinancing other student loans into Part D loans, facilitating the interest rate change process. It also allows borrowers with multiple outstanding Part D loans to consolidate them. Additionally, a report will be required detailing the number of borrowers whose loans have been modified or refinanced in the previous year and how many are delinquent in their payments.

"Nowhere have costs skyrocketed more than in higher education," said Congressman Lawler. "And sadly, with high interest rates, making even a dent in the principal balance can be a challenge. The Affordable Loans for Students Act will make higher education easier to access and student loans easier to pay back, instilling confidence in the affordability of college for all borrowers."

The American Council on Education (ACE), National Association of Student Financial Aid Administrators (NASFAA), and American Association of Colleges and Universities (AAC&U) have endorsed the Affordable Loans for Students Act.

"Increasing college affordability is a top priority of ACE and the higher education community. We are proud to endorse the Affordable Loans for Students Act because we believe that lowering interest rates for future and current borrowers and creating greater flexibility in loan repayment options will significantly benefit students. This bill is a great step in the right direction, and we will continue to work with Congress to increase affordability for all students," said ACE.

"NASFAA has long advocated for systemic solutions to reform student loan repayment. By lowering the interest rate on all federal student loans to 1%, the Affordable Loans for Students Act puts forth an equitable approach that would help ease the burden of student loan debt on current and future borrowers. This legislation is an important step in promoting access to affordable postsecondary education," said Karen McCarthy, Vice President of Public Policy and Federal Relations at NASFAA.

"The American Association of Colleges and Universities is pleased to endorse the Affordable Loans for Students Act. By making it easier to access and repay federal student loans, this bill would make college more affordable for all borrowers and help address the unconscionable debt burden carried by too many students and graduates," stated AAC&U.

Congressman Lawler represents New York's 17th Congressional District, which encompasses areas north of New York City including Rockland, Putnam, Dutchess, and Westchester Counties.