HR 4986 United States House · 118th Congress

Student Loan Interest Elimination Act

HR 4986, the Student Loan Interest Elimination Act, would eliminate interest accrual on most existing Federal student loans starting July 1, 2024, without requiring borrower action, while allowing borrowers to opt out if desired. The bill would also enable refinancing of non-Federal direct loans into Federal Direct Consolidation Loans with no interest, no origination fees, and preservation of previous loan forgiveness benefits. New loans made on or after July 1, 2024, would have interest rates based on borrower income relative to area median income (0-4%), and the bill terminates interest-subsidized loans after June 30, 2024. The bill establishes an Education Affordability Trust Fund, financed by loan repayments, to support these changes and fund additional Pell Grants and college affordability programs.

Issues: ✓ Education

Sub-Topics: Student Financial Aid Higher Education

Bill status in committee 1 of 4 stages cleared

Introduction

Jul 2023

Committee Review

Floor Vote

President

Introduced Jul 27, 2023 Last action Jul 27, 2023

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No floor votes recorded yet.

Full legislative history

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Committee

Jul 27, 2023

Committee

Referred to the Committee on Education and the 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.

lower

Jul 27, 2023

Introduced

Introduced in House

lower

1 primary · 29 co-sponsors