Student Loan Interest Elimination Act
Introduced Mar 24, 2026 by Sen. Peter Welch
It's waiting on a committee vote to reach the full chamber. Most bills never leave this stage.
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%.
Read the full summary on Congress.govSummary by the Congressional Research Service.
No floor votes yet — it hasn't reached the floor of either chamber.