Senate bill · S. 4169 (119th Congress)
Student Loan Interest Elimination Act
U.S. Senate
Sponsor: Peter Welch (U.S. Senator for Vermont, Democratic)
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From Congress.gov and official rosters. This record was last updated Sep 8, 2026. About our data
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.
Summary from the Congressional Research Service. How we handle summaries
Where it stands
Assigned to a committee for review.
- Introduced
- In committee
- Up for a vote
- Passed one chamber
- Passed
- Enacted
Committee
Senate Committee on Health, Education, Labor, and Pensions · U.S. Senate
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Related bills
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Full history
- Mar 26, 2026
Introduced
Introduced in U.S. Senate
U.S. Senate
- Mar 24, 2026
Introduced
Introduced in Senate
U.S. Senate
- Mar 24, 2026
In committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
U.S. Senate
- Mar 24, 2026
Referred to committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Mar 24, 2026
Referred to committee
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Read the record
- Read on Congress.gov (opens in a new tab) The official record on Congress.gov.