What does Preamble of Lowering Student Loans Act do?

This bill proposes to amend the Higher Education Act of 1965. The proposed amendment would set interest rates for Federal student loans made on or after July 1, 2026, at 2 percent. The bill was introduced in the House of Representatives on March 4, 2026, by Mr. Thompson of California and Mr. Moylan.

What does SHORT TITLE. of Lowering Student Loans Act do?

This bill is formally titled the Lowering Student Loans Act.

What does INTEREST RATES FOR FEDERAL STUDENT LOANS. of Lowering Student Loans Act do?

This section amends Section 455(b) of the Higher Education Act of 1965 regarding interest rates for Federal Direct Loans. Paragraph (8) of Section 455(b) is redesignated to apply to loans issued before July 1, 2026. A new paragraph (9) is added to establish interest rates of 2 percent for new and existing Federal Direct Stafford, Unsubsidized Stafford, and PLUS Loans on or after July 1, 2026. Consolidation loans also receive a 2 percent interest rate under the new paragraph (9), both for new applications received on or after July 1, 2026, and existing loans with rates higher than 2 percent. Borrowers with loans affected by the rate adjustment will receive notice 90 days before July 1, 2026, and have 90 days to opt out. The Secretary is required to notify student loan servicers of the rate adjustments and establish a borrower complaint resolution process. Section 428C(a)(3)(B)(i)(V) of the Higher Education Act of 1965 is also amended to allow for eligibility for the annual interest rate described in section 455(b)(9)(C).

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Lowering Student Loans Act

Last updated: 3/4/2026 · Introduced: 3/4/2026

Author: Mike Thompson (D-CA)

TL;DR (AI)

This bill sets the interest rate for new and existing federal student loans, including Stafford, Unsubsidized Stafford, and PLUS Loans, at 2 percent starting July 1, 2026.
Borrowers with loans affected by the interest rate change will receive 90 days' notice before the change and have 90 days to opt out.
The bill requires the Secretary to notify student loan servicers of the changes and establish a borrower complaint resolution process.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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