Trump says he may back 2.5% cap on student loan interest days before midterms

President Donald Trump said over the weekend that he might support a Republican bill to cap federal student loan interest rates at 2.5 percent. The comments come days before the Nov. 3 midterm elections ¹².

The bill is backed by Rep. Anna Paulina Luna, a Florida Republican. Asked about it, Trump said: "Yeah, I might because I think she's fantastic." He then added that it was "something that I would certainly consider" ¹.

What Trump said, and what Luna says he said

Luna described his answer as a firm commitment. She wrote on X that the president "said he will support capping federal student loan interest rates at 2.5%!" ¹².

Those are not the same thing. Trump said "might" and "consider." He did not say he would sign a bill ¹².

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Congress would have to pass a bill first. Luna's bill is still in the House Education and Workforce Committee. Her June resolution to bring it to the House floor was sent to the House Rules Committee, which sets floor debate. Republicans control Congress, and the bill has not advanced ¹.

The proposals on the table also differ. A separate bipartisan bill, the Affordable Loans for Students Act, would cap rates at 2 percent. Its sponsors are Luna, Republican Rep. Mike Lawler of New York and Democratic Rep. Jared Moskowitz of Florida ³.

Why borrowers are skeptical

Rates on newer federal loans now range from 6.52 percent to 9.07 percent, depending on the loan type ². At 2.5 percent, annual interest would be about $250 for every $10,000 borrowed ¹.

Americans owe about $1.86 trillion in student loans, according to Federal Reserve data. That is up roughly $55 billion from a year earlier ¹.

Meanwhile, Trump's administration is defending itself in court over existing relief. Student Defense filed a class-action suit this week saying the Education Department has not carried out a January 2025 decision on Closed School Discharges. The American Federation of Teachers filed a separate suit over Public Service Loan Forgiveness ¹.

The Republican-backed One Big Beautiful Bill Act changed repayment options. Some borrowers, including certain Parent PLUS borrowers, lost access to income-driven repayment and forgiveness ¹. Parent PLUS loans are federal loans that parents take out for their children's education.

Financial adviser Kevin Thompson said Trump has "flip-flopped on student loan relief multiple times" ¹.

A survey by the Student Debt Crisis Center found 92 percent of respondents planned to vote. Nearly two-thirds said they had cut spending on food, housing or health care because of loan payments ¹.

What happens next depends on Congress. Luna's bill has not moved, and the political picture could change after Tuesday's election ¹.

The Record

1. Mar 17, 2025Reps. Moskowitz, Lawler and Luna introduced the bipartisan Affordable Loans for Students Act, which would cap federal student loan interest at 2 percent ³.
2. Jun 1, 2026Luna's resolution to bring her interest-cap bill to the House floor was referred to the House Rules Committee ¹.
3. Oct 24, 2026Trump said over the weekend that he "might" back Luna's 2.5 percent cap and would "certainly consider" it ¹².

Sources

1. Newsweek, “Trump Signals He May Support Student Loan Relief as 2026 Midterms Draw Near” (2026-10-30). newsweek.com/trump-student-loan-debt-2026-midterm-election-1
2. ZeroHedge, “Trump says he might support student loan interest cap” (2026-10-30). zerohedge.com/political/trump-says-he-might-support-student-
3. Office of Rep. Jared Moskowitz, “Moskowitz, Lawler, Luna Introduce Bipartisan Bill to Lower Interest Rate on Federal Student Loans to 2 Percent” (2025-03-17). moskowitz.house.gov/posts/federal-student-loan-interest-rate

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