Bill · H.R. 2003· House(119-HR-2003)
Affordable Loans for Students Act
- Introduced
- 3/10/2025
- Last activity
- 3/10/2025 — Referred to the House Committee on Education and Workforce.
- Sponsored by
- Michael Lawler
- Cosponsors
- - 4 - 3
- 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
Would students be better off under this?+9
The bill is explicitly designed to make student loans more affordable for current and future students.
Does this reduce what student borrowers owe or repay?+9
The bill provides direct relief by drastically lowering interest rates for existing and future borrowers.
Would people in their twenties and thirties be better off under this?+8
Young adults entering or currently in higher education will benefit greatly from lower interest rates.
The opposite
Does this reduce what the federal government owes?-5
Lowering interest rates on federal loans increases federal outlays and could negatively impact the national debt.
Does this reduce what the federal government spends?-5
The bill effectively increases government expenditure through reduced interest revenue.
Does this make the government pay for what it commits to?-3
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
-
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. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students+9Good For Young Adults+8Good For Low Income Households+5Good For Veterans+5Good For Middle Class Households+4Good For African Americans+3Good For Hispanic Americans+3Good For Middle Aged+3Good For Asian Americans+2Good For Men+2Good For Native Americans+2Good For People With Disabilities+2Good For White Americans+2Good For Women+2Good For High Income Households+1Good For Retirees+1
- Education And Technology
- Improves Student Loan Relief+9Improves College Affordability+8
- Economy And Finance
- Improves Consumer Protection+3Improves Economic Growth+2Reduces Government Spending-5Reduces National Debt-5Improves Fiscal Responsibility-3
- Social Issues And Justice
- Improves Poverty Reduction+3Improves Racial Equity+2Improves Affordable Housing+1Reduces Homelessness+1
- Governance And Ideology
- Increases Federal Power+2Improves Government Transparency+1
- National Security And Foreign Policy
- Improves Veterans Benefits+2
- 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