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Displayed interest rates and mortgage rates. Wooden block with percentage sign on many level of stack of coin. Illustrating financial growth, interest rate increase, inflation, sale price and tax rise concepts.
Displayed interest rates and mortgage rates. Wooden block with percentage sign on many level of stack of coin. Illustrating financial growth, interest rate increase, inflation, sale price and tax rise concepts.
Policy and Advocacy Legislation Student Loans Letter to Legislator
Policy and Advocacy Legislation Student Loans Letter to Legislator

AccessLex Institute Supports Bill that Would Set All Federal Direct Student Loan Interest Rates at Two Percent

The Honorable Tim Walberg
Chairman
House Education and Workforce Committee
2176 Rayburn House Office Building
Washington, D.C. 20515

The Honorable Robert Scott
Ranking Member
House Education and Workforce Committee
2328 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Walberg and Ranking Member Scott:

AccessLex Institute® is pleased to offer its support for the Lowering Student Loans Act. Introduced on March 4, 2026 by Representatives Mike Thompson (D-CA-04) and James Moylan (R-GU-AL), H.R. 7810 would help reduce the cost of higher education for borrowers by setting all Federal Direct student loan interest rates at two percent.

AccessLex Institute, in partnership with its nearly 200 nonprofit and state-affiliated ABA-approved member law schools, has been committed to improving access to legal education and to maximizing the affordability and value of a law degree since 1983. The AccessLex Center for Legal Education Excellence® advocates for policies that make legal education work better for students and society alike and conducts research on the most critical issues facing legal education today.

For the current academic year, graduate students were offered Unsubsidized Stafford Loans with an interest rate of 7.94% and Grad PLUS Loans with an 8.94% interest rate. Simple mathematics and the historical experience of student borrowers show us that a student loan’s interest rate level has a direct impact on the ultimate cost of the financing. Higher rates add thousands of dollars in accrued interest to the original principal balance, plus additional interest charges over the life of the loan. And as we have seen in recent years, borrowers are increasingly unable to pay these ballooning student loan debts.

AccessLex Institute has long advocated for lowering interest rates for borrowers by leveraging the federal Treasury’s financing strength in order to increase access to and affordability of higher education. The Lowering Student Loans Act, which materially lowers interest rates by setting them at two percent, will make student debt payments more manageable and make it more likely that borrowers will be able to enroll in higher education, stay out of default, and successfully repay their debts. In turn, these borrowers will be able to contribute positively to the economy by buying homes, starting businesses, and generating tax revenue.

While implementing this policy change will cost money, the primary purpose of the federal government in student lending should not be to generate profit but to assist needful student borrowers in accessing higher education. Any open access program offered by the government to remedy a shortfall in the market, such as in student lending, will incur costs. Therefore, we reiterate our belief that the federal student loan program should be regarded as an investment in human capital, rather than a profit-driven endeavor. H.R. 7810 supports that maxim.

Thank you for your time and attention to this matter. If you have any questions, please do not hesitate to contact me at [email protected] or Nancy Conneely, Managing Director of Policy, at [email protected].

Sincerely,
Christopher P. Chapman
President and Chief Executive Officer
 

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