No Student Loan Interest Act

Bill: 117-hr-4725
Sponsor: full_name: Rep. Swalwell, Eric [D-CA-15]
Introduced: 2021-07-27
Policy area: Education
Latest action: action_date: 2021-07-27
text: Referred to the House Committee on Education and Labor.

Summaries:
action_date: 2021-07-27
action_desc: Introduced in House
text: <p><b>No Student Loan Interest Act</b></p> <p>This bill provides for zero-interest rates on certain federal student loans.</p> <p>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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 4725 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.

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 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.