The purpose of this legislation is to lower the interest rates on federal student loans. Specifically, it aims to set the interest rate for new federal student loans made on or after July 1, 2026, at a fixed rate of 2 percent. This change is intended to make borrowing for education more affordable for students and their families. Key provisions of the legislation include the establishment of a 2 percent interest rate for various types of federal student loans, including Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans.