Sen. Welch Introduces the Student Loan Interest Elimination Act
This bill is currently in the early stages of the legislative process after being sent to the Senate Committee on Health, Education, Labor, and Pensions for review. It is considered active, but no further hearings or votes have been scheduled at this time. The bill is waiting for the committee to decide if it should move forward for a full Senate vote.
Part of: story →Companion bill: Rep. Courtney Introduces Bill to Eliminate Interest on All Federal Student Loans →While this bill would be popular with many voters, it faces a very difficult path because it would cost the government billions of dollars in lost interest revenue. It currently lacks the broad support from both parties needed to pass.
The Department of Education would need to implement a massive loan modification and refinancing program, plus stand up and administer a new Trust Fund. This creates a significant administrative workload. Federal employees who personally carry student loans would also benefit from the 0% interest policy in their personal finances.
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
In an interview, Rep. Joe Courtney discusses his Student Loan Interest Elimination Act, emphasizing that the bill is not about loan forgiveness but about interest elimination to keep costs down for middle-class borrowers through a budget-neutral trust fund model.
A group of House Democrats led by Rep. Joe Courtney introduced legislation to eliminate interest on federal student loans. The bill would establish an Education Affordability Trust Fund to cover administrative costs using investment returns from principal payments.
Document Type
Congressional Bill
Official Title
Student Loan Interest Elimination Act
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