[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7810 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7810
To amend the Higher Education Act of 1965 to set interest rates for
Federal student loans made on or after July 1, 2026, at 2 percent, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2026
Mr. Thompson of California (for himself and Mr. Moylan) introduced the
following bill; which was referred to the Committee on Education and
Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to set interest rates for
Federal student loans made on or after July 1, 2026, at 2 percent, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Lowering Student Loans Act''.
SEC. 2. INTEREST RATES FOR FEDERAL STUDENT LOANS.
(a) Federal Direct Loans.--Section 455(b) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(b)) is amended--
(1) by redesignating paragraphs (9) and (10) as paragraphs
(10) and (11), respectively;
(2) in paragraph (8)--
(A) in the heading of such paragraph, by striking
``2013.'' and inserting ``2013 and before july 1,
2026.''; and
(B) in subparagraphs (A) through (D), by inserting
``and before July 1, 2026,'' after ``July 1, 2013,'';
and
(3) by inserting after paragraph (8) the following:
``(9) Interest rate provisions for loans on or after july
1, 2026.--
``(A) Rates for direct loans other than
consolidation loans.--
``(i) New loans.--Notwithstanding the
preceding paragraphs of this subsection, for
Federal Direct Stafford Loans, Federal Direct
Unsubsidized Stafford Loans, and Federal Direct
PLUS Loans (including such a loan made to a
parent on behalf of a dependent student) for
which the first disbursement is made on or
after July 1, 2026, the applicable rate of
interest shall be 2 percent on the unpaid
principal balance of the loan.
``(ii) Existing loans.--Notwithstanding the
preceding paragraphs of this subsection and
subject to subparagraphs (C) and (D), with
respect to a loan described in clause (i) for
which the first disbursement was made before
July 1, 2026, and for which the applicable rate
of interest is greater than 2 percent,
beginning on July 1, 2026, the applicable rate
of interest for such loan shall be 2 percent on
the unpaid principal balance of such loan.
``(B) Rates for consolidation loans.--
``(i) New loans.--Notwithstanding the
preceding paragraphs of this subsection, any
Federal Direct Consolidation Loan for which the
application is received on or after July 1,
2026, shall bear interest at an annual rate on
the unpaid principal balance of the loan that
is 2 percent.
``(ii) Existing loans.--Notwithstanding the
preceding paragraphs of this subsection and
subject to subparagraphs (C) and (D), any
Federal Direct Consolidation Loan for which the
application was received before July 1, 2026,
and which bears interest at an annual rate on
the unpaid principal balance of the loan that
is greater than 2 percent, shall, beginning on
July 1, 2026, bear interest at an annual rate
on the unpaid principal balance of the loan
that is 2 percent.
``(iii) FFEL consolidation loans.--A
borrower of a consolidation loan made, insured,
or guaranteed under part B may consolidate such
loan into a Federal Direct Consolidation Loan
under this part in accordance with section
428C(a)(3)(B)(i)(V).
``(C) Notice and opt out for existing loans.--With
respect to each borrower with a loan described in
subparagraph (A)(ii) or a Federal Direct Consolidation
Loan described in subparagraph (B)(ii), the Secretary
shall--
``(i) not later than the date that is 90
days before July 1, 2026, provide to the
borrower notice of the adjustment of the
applicable rate of interest for such a loan
pursuant to this paragraph, which shall include
information relating to opting out of such
adjustment as described in clause (ii); and
``(ii) allow the borrower to, not later
than 90 days after receiving such notice, opt
out of such adjustment.
``(D) Terms and conditions.--Except as expressly
provided in subparagraphs (A) and (B), nothing in this
paragraph may be construed to alter or affect the
terms, conditions, or benefits of a loan described in
this paragraph.
``(E) Rate.--The applicable rate of interest under
this paragraph for Federal Direct Stafford Loans,
Federal Direct Unsubsidized Stafford Loans, Federal
Direct PLUS Loans (including such a loan made to a
parent on behalf of a dependent student), and Federal
Direct Consolidation Loans shall be fixed for the
period of the loan.
``(F) Loan servicers.--Not later than the date that
is 90 days before July 1, 2026, the Secretary shall--
``(i) notify student loan servicers of the
rate adjustments for all loans pursuant to this
paragraph; and
``(ii) establish a borrower complaint
resolution process with respect to any errors
or delays relating to such adjustments.''.
(b) FFEL Loans.--Section 428C(a)(3)(B)(i)(V) of the Higher
Education Act of 1965 (20 U.S.C. 1078-3(a)(3)(B)(i)(V)) is amended--
(1) in item (cc), by striking the period at the end and
inserting a semicolon;
(2) in item (dd), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(ee) for the purpose of
being eligible for the annual
interest rate described in
section 455(b)(9)(C).''.
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