No Student Loan Interest Act

Bill: 116-hr-3751
Sponsor: full_name: Rep. Swalwell, Eric [D-CA-15]
Introduced: 2019-07-15
Policy area: Education
Subjects: Government lending and loan guarantees

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2019-07-15
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2019-07-15
action_desc: Introduced in House
text: <p><b>No Student Loan Interest Act</b></p> <p>This bill provides for the cancellation of interest on certain federal student loans.</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 3751 IN THE HOUSE OF REPRESENTATIVES July 15, 2019 Mr. Swalwell of California (for himself and Ms. Eshoo ) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend the Higher Education Act of 1965 to provide for the relief of interest on certain Federal student loans.

1. Short title This Act may be cited as the No Student Loan Interest Act . 2. Zero-interest rates for borrowers of Federal student loans (a) Interest rate for part B loans Section 427A of the Higher Education Act of 1965 ( 20 U.S.C. 1077a ) is amended to read as follows: 427A. Applicable interest rates Notwithstanding any other provision of law, beginning on the date of the enactment of the No Student Loan Interest Act, the Secretary shall annually cancel or repay the interest on each loan made or insured under this part. . (b) Interest rate for part D loans Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended to read as follows: (b) Interest rates (1) In general Notwithstanding any other provision of law, loans made to borrowers under this part shall have an applicable rate of interest equal to zero. (2) Rate The applicable rate of interest described in paragraph (1) shall be fixed for the period of the loan. (3) Rule for loans disbursed before date of enactment In the case of a loan made under this part for which the first disbursement was made before the date of the enactment of the No Student Loan Interest Act, the Secretary shall— (A) cancel all interest due on such a loan; and (B) adjust the interest rate of such loan in accordance with paragraph (1). .