119th Congress · introduced in the Senate · Mar 24, 2026
Student Loan Interest Elimination Act
Official title from Congress.gov
Latest action (Mar 24, 2026): Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
View on Congress.govPolicy area: Education
Congressional Research Service summary, version: Introduced in Senate (Mar 24, 2026)
Student Loan Interest Elimination Act
This bill eliminates interest on existing and new federal student loans beginning on July 1, 2026.
Specifically, for existing federal student loans, the bill directs the Department of Education (ED) to establish and implement procedures to (1) modify the terms of Federal Direct Loans so that beginning on July 1, 2026, no interest shall accrue on such a loan; and (2) allow a borrower to opt out of this loan modification.
Additionally, ED must establish and implement procedures to (1) refinance eligible loans that are not Federal Direct Loans (e.g., privately held Federal Family Education Loans and Perkins Loans), and (2) allow a borrower to opt out of this loan refinancing. The bill outlines the terms and conditions of these refinanced loans, including by prohibiting ED from charging origination fees and specifying that no interest shall accrue on these loans.
For new federal student loans made on or after July 1, 2026, the bill sets the applicable interest rate at 0%.
The bill establishes the Education Affordability Trust Fund. ED must deposit all payments made on federal student loans into this trust fund. The Education Affordability Trust Fund Board, as established by this bill, must transfer the assets from investments of this trust fund to ED to pay for the administrative costs of carrying out federal student loan programs.
Show the full summary (1 more paragraphs)Includes amendment, cloture, and procedural votes. Each is labeled with its exact question; only a passage question is a vote to pass the bill.
No recorded roll calls on this bill in coverage.
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Introduced in Senate
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