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Student Loan Interest Cap: Maximum 3 Percent Rate for Federal Loans

This bill drastically lowers the maximum interest rate on Federal Direct student loans to 3 percent. Students and parents taking out new loans (Stafford, Unsubsidized Stafford, PLUS) after July 1, 2024, will pay significantly less interest over the life of the loan. This 3 percent cap also applies to individuals consolidating their federal debt after that date, reducing their overall financial burden.
Key points
The maximum interest rate for new Federal Direct student loans (Staffords, PLUS) disbursed on or after July 1, 2024, cannot exceed 3 percent.
Federal Direct Consolidation Loans applied for on or after July 1, 2024, will also be capped at a maximum annual interest rate of 3 percent.
This change aims to substantially reduce the cost of higher education and alleviate student debt for future and current borrowers.
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Status:
Expired
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Additional Information
Print number: 118_HR_9441
Sponsor: Rep. Moskowitz, Jared [D-FL-23]
Process start date: 2024-08-30
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Student Loan Interest Cap Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9441.

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 2024-08-30.

What are the main provisions?

Key points include:

  • The maximum interest rate for new Federal Direct student loans (Staffords, PLUS) disbursed on or after July 1, 2024, cannot exceed 3 percent.
  • Federal Direct Consolidation Loans applied for on or after July 1, 2024, will also be capped at a maximum annual interest rate of 3 percent.
  • This change aims to substantially reduce the cost of higher education and alleviate student debt for future and current borrowers.
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. Moskowitz, Jared [D-FL-23].

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 2025-12-26.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Education Economy