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S. 4169: Student Loan Interest Elimination Act

119th Congress · introduced 2026-03-24 · Education · Latest: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

federal

What does this mean?

Official title

Student Loan Interest Elimination Act

Plain summary

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. The bill allows ED to use excess amounts of funds in the trust fund to carry out a Supplemental Pell Grant Program.

Congressional Research Service summary (Introduced in Senate), quoted unchanged (nonpartisan). Read the source.

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What does this mean? (plain words)

Official text

Student Loan Interest Elimination Act

Source: Congressional Research Service summary (Introduced in Senate)

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Officials and money

Sponsor: Sen. Welch, Peter [D-VT] · 1 cosponsors

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Words on this page, explained (1)
Bill
A proposed law. It becomes law only if it passes the legislature and is signed by the president or governor (or a veto is overridden).

Plain meanings written from linked sources. All words.

Sources

Record fed-us-cong119-s4169 · catalog fed-us-congress-bills-cong119 · updated 2026-11-03 by psicol fed-bills