The 19-year-old, who plays at either full-back or in central midfield, is now contracted until the summer of 2016.
Lowe has become a regular this season for Blackburn and captained England's Under-20 side before breaking into the under-21 ranks
"I'm delighted with his progress, Stuart Pearce is as well for the under-21s, and I believe he has a long and successful career ahead of him," said manager Steve Kean.
VERY GOOD
Meanwhile, Kean hopes Blackburn's Carling Cup victory over Newcastle United will have silenced some of his critics.
Kean has had to endure protests from a section of Rovers fans calling for his head, but the style of the 4-3 victory - and the fact it was Newcastle's first defeat of the season - should have eased the pressure on the manager's shoulders.
"I hope that silences some of the critics," Kean said.
"Anybody who was there looking to criticise us would see we took the scalp of a very, very good Newcastle side and we are the first team to beat them this season.
"The team showed massive character - not just for us to have beaten them but the manner in which we beat them. We showed a never-say-die attitude."
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