Student Loan Interest Elimination Act

Progress

Timeline

• Mar 24Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Summary

**What it does:** This bill would eliminate interest charges on federal student loans and create a new "Education Affordability Trust Fund." It would also raise the annual and total amounts students can borrow through federal loan programs. **Who it affects:** - Current and future federal student loan borrowers - People considering college who need financial aid - Taxpayers (who would fund the trust fund) **What would change:** - Student loans would no longer accumulate interest, reducing total repayment costs - Students could potentially borrow more money for education expenses - The government would need to find new funding sources since interest revenue would be eliminated - Monthly loan payments would likely be lower since borrowers would only repay the principal amount **Current status:** The bill is still being reviewed in congressional committee and has not been voted on by the full House or Senate.

How This Affects You