Student Loan Interest Rate Cap Act
This bill caps federal student loan interest rates at the 10-year Treasury rate plus 1%, retroactively applies this cap to existing federal loans, and allows existing borrowers to refinance at the new lower rate. Private student loans originated after enactment must also disclose comparison rates.
Discussion (5)
I'd support this with one change — thresholds should be adjusted for regional cost differences.
I support the intent but worry about the implementation timeline. Can we add a phased rollout?
Small entities should receive different treatment. I propose a tiered approach based on size.
Create tiered requirements by entity size
+ Proposed Text
Section 4(b) amended: "Tiered requirements — Tier 1 (revenue >$50M): 12 months; Tier 2 ($10M-$50M): 24 months; Tier 3 (<$10M): 36 months with technical assistance."
This would directly affect my community. I have some suggested changes to make it more practical.
The concept is sound but costs may be significantly higher than estimated based on my analysis.