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Affordable Loans for Students Act
3/26/2025, 2:45 PM
Summary of Bill HR 2003
If passed, this legislation would significantly decrease the amount of money that students have to pay back on their loans, ultimately making it easier for them to pursue a college education without being saddled with overwhelming debt. The bill is intended to help students from all backgrounds access higher education and achieve their academic and career goals.
Supporters of the bill argue that lowering the interest rate on Federal student loans will make college more accessible and affordable for a wider range of students, ultimately leading to a more educated and skilled workforce. Critics, however, may argue that reducing the interest rate could have negative implications for the federal budget and could potentially lead to increased borrowing and spending by students. Overall, Bill 119 HR 2003 represents an important effort to address the rising cost of higher education and make college more affordable for students across the country. It will be interesting to see how this legislation progresses through Congress and what impact it may have on the future of student loan policy in the United States.
Congressional Summary of HR 2003
Affordable Loans for Students Act
This bill sets the interest rate at 2% for new and existing federal student loans. (Currently, interest rates on federal student loans range from 6.53% to 9.08%, depending on the loan type.)
Specifically, the bill directs the Department of Education (ED) to establish and implement procedures to modify the terms of federal student loans held by ED so the applicable rate of interest shall be 2% on the unpaid principal balance of the loan. ED must modify the interest rate without any action from the borrower.
Additionally, ED must establish and implement procedures to (1) refinance eligible loans that are not held by ED (e.g., privately held Federal Family Education Loans and Perkins Loans) as consolidation loans, and (2) allow a borrower to opt out of this loan refinancing. The bill outlines the terms and conditions of these refinanced loans, including by prohibiting ED from charging origination fees and by setting the interest rate at 2% on these loans.
The bill applies the 2% interest rate to new loans (i.e., federal student loans made beginning on the first July 1 after the bill's enactment) and also applies this rate retroactively to existing loans.
Read the Full Bill
Current Status of Bill HR 2003
Bipartisan Support of Bill HR 2003
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
2Democrat Cosponsors
1Republican Cosponsors
1Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 2003
Primary Policy Focus
EducationAlternate Title(s) of Bill HR 2003
Comments
Samuel Goldman
1 year ago
This bill is great for students who need help with loans. It will make it easier for them to afford college and get a good education. I support it because it will benefit many people, including me. Students across the country will benefit from this bill.
