Bills · HR 2003
IN COMMITTEE· 119TH CONGRESS
House BillHR 2003Interest, dividends, interest ratesStudent aid and college costs
Affordable Loans for Students Act
INTRO MAR 10· LAST ACTION MAR 10
READING
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COSPONSORS
0BIPARTISAN
READER REACTIONS0 TOTAL
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- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it aims to make higher education more affordable and reduce the significant financial burden of student loan debt that many Americans face. By cutting interest rates to 2 percent, it could free up hundreds or even thousands of dollars annually for individual borrowers, allowing them to spend, save, or invest that money elsewhere, potentially boosting local economies.
If this bill becomes law, it could lead to less financial stress for graduates, greater opportunities for homeownership, starting families, or pursuing entrepreneurial ventures, and a more robust consumer economy. If it doesn't pass, current and future borrowers will continue to pay the prevailing, often higher, interest rates on federal student loans, perpetuating the cycle of high debt and its associated economic constraints.
KEY PROVISIONS
5AI-extractedPROVISION 01
Lowers the interest rate on all eligible federal student loans to 2 percent.
This directly reduces the cost of borrowing for millions of students and graduates, making loan repayment more manageable.
PROVISION 02
Automatically modifies eligible federal loans held by the Secretary of Education to the 2 percent interest rate without borrower action.
This ensures immediate and widespread relief for the majority of federal student loan borrowers without requiring them to navigate complex paperwork or processes.
PROVISION 03
Automatically refinances eligible federal student loans not held by the Secretary (like some older FFEL or Perkins loans) into new Direct Consolidation Loans at 2 percent, with an opt-out option for borrowers.
This extends the benefit of the lower interest rate to a broader range of federal loan types, including those currently serviced by private entities, ensuring equitable access to the reduced rate.
PROVISION 04
Prohibits charging origination fees for the new Direct Consolidation Loans created under this program.
This prevents borrowers from incurring additional costs when their loans are refinanced to the lower interest rate.
PROVISION 05
Requires annual reports on the number of modified/refinanced loans and delinquencies.
This provides transparency and accountability regarding the program's reach and effectiveness.
SPONSORSHIP
1 + 0
R· New York
YRS IN OFFICE
3
BILLS LED
123
ACTION TIMELINE
2 EVENTSMAR 10
Introduced in House
MAR 10
Referred to the House Committee on Education and Workforce.
BILL INFO
TypeHouse Bill
NumberHR 2003
Congress119th
StatusIn Committee
IntroducedMar 10, 2025
Last actionMar 10, 2025
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IN COMMITTEE· 119TH CONGRESS · EDUCATION AND WORKFORCE COMMITTEE · INTRODUCED MAR 10, 2025
House BillHR 2003Interest, dividends, interest ratesStudent aid and college costs
Affordable Loans for Students Act
INTRODUCED MAR 10, 2025· LAST ACTION MAR 10, 2025
PASSAGE CHANCES
—%
READING
—
COSPONSORS
0
COMPLEXITY
Moderate
