Lowering Student Loans Act

This bill, known as the Lowering Student Loans Act, would set the interest rate for new and existing Federal student loans at 2 percent starting July 1, 2026. It directly affects borrowers of Federal Direct Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Consolidation Loans by fixing their interest rates at this lower percentage for the duration of the loan. The legislation requires the government to notify borrowers 90 days before the change takes place and allows them to opt out of the rate adjustment within 90 days of receiving notice. Loan servicers would also be notified of the adjustments, and a complaint resolution process would be established to handle any errors or delays related to the rate changes.