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This bill amends the Higher Education Act of 1965 to cap the maximum interest rate on Federal Direct student loans at 3 percent for loans first disbursed on or after July 1, 2024. The cap applies to Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans. The bill would reduce interest rates from their current statutory levels, which are set annually based on market rates.
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