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This bill amends the Higher Education Act of 1965 to reduce the interest rate on federal student loans to 2 percent. It applies to existing federal direct loans held by the Department of Education and allows borrowers with federal loans held by private lenders to refinance them as federal direct consolidation loans at the 2 percent rate. The bill also sets the interest rate at 2 percent for all new federal student loans made on or after the first July 1 following enactment.
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