The Affordable Loans for Students Act seeks to substantially reduce the financial burden of federal student loans by setting a universal interest rate of 2.0 percent. This legislation mandates that the Secretary of Education modify the terms of all eligible federal loans currently held by the Secretary , automatically lowering their interest rate to 2.0 percent without requiring any action from the borrower. This change will take effect on the first July 1 following the act's enactment. For eligible federal student loans not held by the Secretary , the bill establishes a program for automatic refinancing into Federal Direct Consolidation Loans, also at a 2.0 percent interest rate. Borrowers will have the option to opt out of this refinancing. These newly refinanced loans will generally maintain the terms and conditions of other Federal Direct Consolidation Loans, but with the critical difference of a 2.0 percent interest rate and no origination fees. The bill also ensures that the repayment period of the original loan is not automatically extended upon refinancing. Furthermore, the Act stipulates that all new Federal Direct Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, and Federal Direct Consolidation Loans disbursed on or after the first July 1 following the act's enactment will also carry a fixed interest rate of 2.0 percent. The Secretary is required to submit annual reports detailing the number of modified or refinanced loans and associated delinquency rates, ensuring transparency and oversight of the program's impact.