Moskowitz, Lawler, Luna Introduce Bipartisan Bill to Lower Interest Rate on Federal Student Loans to 2 Percent

WASHINGTON, DC — Congressman Jared Moskowitz (D-FL-23) recently joined Congressman Mike Lawler (R-NY-17) and Congresswoman Anna Paulina Luna (R-FL-13) to introduce their bipartisan Affordable Loans for Students Act, lowering the interest rate on federal student loans to 2 percent.

“Hardworking Americans shouldn’t be saddled with more student loan debt than what they took out just because of interest rates—but that’s what many Floridians who took out loans face, sometimes decades after they went to school,” said Congressman Moskowitz. “This mounting financial burden is a major barrier to Florida families buying a home, saving for retirement, and setting their own kids up for success. There’s a clear, bipartisan consensus that it needs to be addressed, and my commonsense legislation with Reps. Lawler and Luna moves that process forward by capping student loan interest rates at 2% across the board. The bottom line is, our government shouldn’t be handicapping American families through unreasonable interest rates on their student loans, and this bill implements a measured approach to keep loans accessible and ensure that educational opportunities truly set young Floridians up for success.”

Specifically, Moskowitz’s bipartisan Affordable Loans for Students Act with Reps. Lawler and Luna:

1. Lowers the interest rate on federal student loans to 2%;
2. Retroactively applies the interest rate adjustment to outstanding loans;
3. Authorizes the Department of Education to modify the interest rate and refinance student loans automatically, without any opt-in from borrowers (and borrowers may opt-out of refinancing if they choose);
4. Provides for the refinancing of other student loans to Part D loans to ease the rate adjustment process;
5. Authorizes borrowers to consolidate loans if they have multiple outstanding Part D loans following this change; and
6. Requires a report with information on the total number of borrowers whose loans have been modified or refinanced under this section during the preceding year and the number of such borrowers who are delinquent in making payments on such a loan.

“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. By adjusting the rate to 2% and doing this retroactively, we’re giving borrowers the flexibility they need to pay off their debt without unnecessary obstacles, like the outrageous additional cost post-graduation that is now synonymous with quality education,” said Congressman Lawler.

“High interest rates add years, sometimes even decades, to the time it takes for student loans to be paid off. This is unacceptable—the federal government should not be putting strain on its students and young graduates for profit. This legislation caps and ends excessive interest rates, expanding access to college degrees and making American workers even more competitive in the modern workforce,” said Congresswoman Luna.

The bipartisan Affordable Loans for Students Act is supported by the National Association of Student Financial Aid Administrators (NASFAA), the American Council on Education, and the American Association of Colleges and Universities.

For more information on the bill, click HERE.

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