Student Loan Interest Elimination Act

Hozzl · 2026-04-21T16:26:47Z

Explore the details of Senate Bill 4169 Student Loan Interest Elimination Act currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Education. Stay informed on legislative developments.

4/21/2026, 4:26 PM

Summary of Bill S 4169

The bill introduced in the 119th Congress, designated as S. 4169, aims to amend the Higher Education Act of 1965 by proposing measures to eliminate interest on student loans, establish the Education Affordability Trust Fund, and increase both annual and aggregate loan limits. Its broader objectives include addressing the affordability of education and enhancing access to student loans, with details likely outlined within the bill's text.

Congressional Summary of S 4169

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.

Read the Full Bill

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Current Status of Bill S 4169

Bill S 4169 is currently in the status of Bill Introduced since March 24, 2026. Bill S 4169 was introduced during Congress 119 and was introduced to the Senate on March 24, 2026. Bill S 4169's most recent activity was Read twice and referred to the Committee on Health, Education, Labor, and Pensions. as of March 24, 2026

Bipartisan Support of Bill S 4169

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill S 4169

Primary Policy Focus

Education

Alternate Title(s) of Bill S 4169

Student Loan Interest Elimination Act

A bill to amend the Higher Education Act of 1965 to eliminate interest on student loans, establish the Education Affordability Trust Fund, increase annual and aggregate loan limits, and for other purposes.