Affordable Loans for Students Act

2% interest and refinancing for federal student loans

If enacted, eligible federal student loans held by the Secretary would be reset to a 2.0% interest rate starting the first July 1 after enactment, without any action from you. Eligible federal loans not held by the Secretary would be refinanced into a Direct Consolidation Loan at 2.0% unless you opt out. There would be no origination fee, and your repayment term would not be extended automatically. You could choose a different repayment plan later, and the Secretary could adjust terms to preserve loan forgiveness or other better benefits you had. You could combine other eligible loans into one consolidation loan, but you would not have to. Covered loans are defined in the bill, including older loans first disbursed before that date and certain loans under parts B and E and the Public Health Service Act.