Student Loan Interest Elimination Act

Progress

Timeline

• Mar 24Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Summary

**What it does:** This bill proposes to eliminate interest charges on federal student loans and create a new "Education Affordability Trust Fund." It would also increase the maximum amounts students can borrow annually and over their entire education. **Who it affects:** - Current and future federal student loan borrowers - Students seeking higher education funding - Taxpayers (who would fund the trust fund) **What would change:** - Students would no longer pay interest on federal student loans, reducing total repayment costs - Students could potentially borrow more money for college expenses - The government would need to find funding sources for the trust fund to replace lost interest revenue - Monthly loan payments for existing borrowers could decrease since no interest would accrue **Current status:** The bill is still in committee and has not been voted on by Congress. It would need to pass both chambers and be signed by the President to become law.

How This Affects You