A Democratic bill with 1 Democratic cosponsor · See the cosponsor
Last activity — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, known as the "Student Loan Interest Elimination Act," aims to amend the Higher Education Act of 1965. It seeks to eliminate interest on student loans and establish the Education Affordability Trust Fund. The legislation includes provisions to modify existing Federal Direct loans and refinance certain non-Federal direct loans to remove interest. It also establishes new terms for future Federal student loans and sets annual and aggregate loan limits that adjust for inflation. Additionally, the bill creates a supplemental Federal Pell Grant Program funded by excess amounts from the new trust fund.
Yes· 3 of 8
- Scored +10
Would students be better off under this?
The bill directly targets student debt by removing interest and increasing loan limits and grant potential.
- Scored +10
Does this make college cost less?
The bill eliminates interest on existing and future student loans and increases supplemental Pell Grant opportunities.
- Scored +9
Would people in their twenties and thirties be better off under this?
Young adults often face the highest student loan burdens, which this bill seeks to mitigate through zero interest.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Elimination of interest on existing loans: The Secretary would modify eligible Federal Direct loans so that no interest accrues starting July 1, 2026 (Section 102(a)(1)).
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Refinancing of non-Federal loans: Borrowers with eligible non-Federal direct loans can have them refinanced into Federal Direct Consolidation Loans with no interest accruing (Section 102(b)(2)(A) and (C)).
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No origination fees on refinanced loans: The Secretary is prohibited from charging borrowers origination fees for loans made under the refinancing program (Section 102(b)(2)(B)).
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Protection of repayment terms: Refinanced loans will not result in an extension of the original loan's repayment period (Section 102(b)(2)(D)).
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Increased loan limits and inflation adjustments: The bill increases annual and aggregate loan limits, which are adjusted for inflation starting July 1, 2027 (Section 203).
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Supplemental Pell Grants: The Secretary may use excess trust fund amounts to provide additional Federal Pell Grants to students (Section 301(a)).
Potential Negative Impacts for People
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Termination of interest subsidized loans: No new Federal Direct Stafford Loans may be made after June 30, 2026 (Section 202(a)).
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Requirement to opt-out: While the bill allows borrowers to opt out of loan modifications or refinancing, the change to the terms of the loan is implemented without action from the borrower (Section 102(a)(1) and (b)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would students be better off under this? — The bill directly targets student debt by removing interest and increasing loan limits and grant potential. Would people in their twenties and thirties be better off under this? — Young adults often face the highest student loan burdens, which this bill seeks to mitigate through zero interest. Would households on low incomes be better off under this? — The expansion of Pell Grants and elimination of interest specifically benefits lower-income students. Would middle-income households be better off under this? — Middle-class borrowers with existing loans will benefit from the elimination of accruing interest.
- Education And Technology
- Does this make college cost less? — The bill eliminates interest on existing and future student loans and increases supplemental Pell Grant opportunities.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — Eliminating student loan interest and providing supplemental Pell Grants can help lift low-income individuals out of debt and poverty.
- Economy And Finance
- Is this likely to grow the economy? — The establishment of the Education Affordability Trust Fund and zero-interest loans may stimulate consumer spending by reducing debt burdens.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — The bill requires the Secretary of Education to submit annual reports to Congress regarding the trust fund and loan modifications.
- 3/26/2026
- 1 Cosponsor added.
- 3/24/2026
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
John FettermanDemocrat · Pennsylvania