Student Loan Interest Cap Act

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9441 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 9441

    To amend the Higher Education Act of 1965 to reduce the maximum 
    interest rates for Federal Direct student loans, and for other 
                               purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                            August 30, 2024

  Mr. Moskowitz (for himself and Mrs. Luna) introduced the following 
    bill; which was referred to the Committee on Education and the 
                               Workforce

_______________________________________________________________________

                                 A BILL


 
    To amend the Higher Education Act of 1965 to reduce the maximum 
    interest rates for Federal Direct student loans, 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 ``Student Loan Interest Cap Act''.

SEC. 2. REDUCTION OF MAXIMUM INTEREST RATES FOR FEDERAL DIRECT STUDENT 
              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; and
            (2) by inserting after paragraph (8) the following;
            ``(9) Interest rate provisions for new loans on or after 
        july 1, 2024.--
                    ``(A) Rate for fdsl, fdusl, and plus loans.--
                            ``(i) Notwithstanding the preceding 
                        paragraphs of this subsection, for a loan 
                        specified in clause (ii) for which the first 
                        disbursement is made on or after July 1, 2024, 
                        the applicable rate of interest shall not 
                        exceed 3 percent.
                            ``(ii) The loans specified in this clause 
                        are the following:
                                    ``(I) Federal Direct Stafford 
                                Loans.
                                    ``(II) Federal Direct Unsubsidized 
                                Stafford Loans.
                                    ``(III) Federal Direct PLUS Loans.
                    ``(B) Rate for consolidation loans.--
                Notwithstanding the preceding paragraphs of this 
                subsection, any Federal Direct Consolidation Loan for 
                which the application is received on or after July 1, 
                2024, shall bear interest at an annual rate of not more 
                than 3 percent on the unpaid principal balance of the 
                loan, regardless of the interest rates of the loans 
                consolidated by such Federal Direct Consolidation 
                Loan.''.
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