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Lower Student Loan Interest: Just 1 Percent

This act lowers the interest rate on all federal student loans to 1 percent. This change will happen automatically for most loans, and others will be offered the option to refinance under the new terms. This means lower monthly payments and reduced overall repayment costs for millions of students and graduates.
Key points
Interest rates on all federal student loans will be reduced to 1 percent.
The interest rate change will be automatic for government-held loans, requiring no action from the borrower.
Federal student loans not held by the government will be automatically refinanced under new terms, unless the borrower opts out.
New student loans taken out after the act's effective date will also have a 1 percent interest rate.
The loan repayment period will not be automatically extended as a result of refinancing.
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Additional Information
Print number: 118_HR_10159
Sponsor: Rep. Lawler, Michael [R-NY-17]
Process start date: 2024-11-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Affordable Loans for Students Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_10159.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-11-18.

What are the main provisions?

Key points include:

  • Interest rates on all federal student loans will be reduced to 1 percent.
  • The interest rate change will be automatic for government-held loans, requiring no action from the borrower.
  • Federal student loans not held by the government will be automatically refinanced under new terms, unless the borrower opts out.
  • New student loans taken out after the act's effective date will also have a 1 percent interest rate.
  • The loan repayment period will not be automatically extended as a result of refinancing.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lawler, Michael [R-NY-17].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and the Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Education