H.R. 7810

[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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