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
To amend the Higher Education Act of 1965 to provide for the relief of interest on certain Federal student loans.
This Act may be cited as the
No Student Loan Interest Act.
Zero-interest rates for borrowers of Federal student loans
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:
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.
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:
Notwithstanding any other provision of law, loans made to borrowers under this part shall have an applicable rate of interest equal to zero.
The applicable rate of interest described in paragraph (1) shall be fixed for the period of the loan.
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—
cancel all interest due on such a loan; and
adjust the interest rate of such loan in accordance with paragraph (1).