skip to main content

H.R. 3751: No Student Loan Interest Act


The text of the bill below is as of Jul 15, 2019 (Introduced).


I

116th CONGRESS

1st Session

H. R. 3751

IN THE HOUSE OF REPRESENTATIVES

July 15, 2019

(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).

.