Title: No Student Loan Interest Act
Policy area: Education

Summary:
No Student Loan Interest Act
This bill provides for zero-interest rates on certain federal student loans.
Specifically, the bill sets the interest rate at 0% for (1) existing loans made under the Federal Family Education Loan Program or the Federal Direct Loan Program, and (2) new loans made under the Federal Direct Loan Program.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4725 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 4725

To provide for the relief of interest on certain Federal student loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2021

Mr. Swalwell (for himself, Ms. Eshoo, and Mr. McNerney) introduced the 
 following bill; which was referred to the Committee on Education and 
                                 Labor

_______________________________________________________________________

                                 A BILL


 
To provide for the relief of interest on certain Federal student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Student Loan Interest Act''.

SEC. 2. ZERO-INTEREST RATES FOR BORROWERS OF FEDERAL STUDENT LOANS.

    (a) Interest Rate for FFEL Loans.--Section 427A of the Higher 
Education Act of 1965 (20 U.S.C. 1077a) is amended by adding at the end 
the following:
    ``(o) Zero-Interest Rates.--Notwithstanding any other provision of 
this section or this Act, with respect to any loan made, insured, or 
guaranteed under this part for which the first disbursement is made on 
or before July 1, 2010, the applicable rate of interest shall be zero 
on the unpaid principal balance of the loan.''.
    (b) Interest Rate for Direct Loans.--Section 455(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(b)) is amended by adding at the 
end the following:
            ``(11) Zero-interest rate.--
                    ``(A) New loans.--Notwithstanding the preceding 
                paragraphs of this subsection or any other provision of 
                this Act, with respect to any loan made under this part 
                for which the first disbursement is made on or after 
                July 1, 2022, the applicable rate of interest shall be 
                zero, and shall be fixed for the period of the loan.
                    ``(B) Existing loans.--Notwithstanding the 
                preceding paragraphs of this subsection or any other 
                provision of this Act, with respect to any loan made 
                under this part for which the first disbursement is 
                made before July 1, 2022, the applicable rate of 
                interest shall be zero on the unpaid principal balance 
                of the loan.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2022.
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