To amend the Higher Education Act of 1965 to eliminate interest on student loans, establish the Education Affordability Trust Fund, increase annual and aggregate loan limits, and for other purposes

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