This bill seeks to amend the Higher Education Act of 1965 by significantly lowering interest rates for federal student loans. It mandates that all new Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, Federal Direct PLUS Loans, and Federal Direct Consolidation Loans disbursed or applied for on or after July 1, 2026 , will carry a fixed interest rate of 2 percent . This provision aims to reduce the financial burden on students and parents by making future borrowing more affordable. The legislation also extends this 2 percent interest rate to most existing Federal Direct Loans and Federal Direct Consolidation Loans that currently have rates exceeding 2 percent, effective from July 1, 2026. Borrowers with these existing loans will receive a notice and be given 90 days to opt out of this rate adjustment if they prefer. Furthermore, the bill allows borrowers with Federal Family Education Loan (FFEL) consolidation loans to consolidate them into Federal Direct Consolidation Loans to qualify for the new 2 percent rate, and requires the Secretary of Education to notify loan servicers and establish a complaint resolution process for these changes.