What does Preamble of Student Loan Interest Elimination Act do?

This bill aims to amend the Higher Education Act of 1965 It seeks to eliminate interest on student loans It proposes to establish the Education Affordability Trust Fund It intends to increase annual and aggregate loan limits

What does PROGRAM AUTHORITY. of Student Loan Interest Elimination Act do?

This section amends Section 451(a) of the Higher Education Act of 1965. The amendment requires the use of funds available from the Education Affordability Trust Fund, as outlined in section 494A, before other funds. The amendment modifies language related to subsections within Section 451(a). The amendment adds authority to make loans under section 460A(b).

What does PROGRAM FOR THE LOAN MODIFICATION OF ELIGIBLE FEDERAL DIRECT of Student Loan Interest Elimination Act do?

Summary temporarily unavailable. Please try again later.

What does APPLICABLE RATES OF INTEREST FOR LOANS MADE ON OR AFTER JULY of Student Loan Interest Elimination Act do?

This section amends Section 455(b)(8) of the Higher Education Act of 1965 The amendment inserts 'and before July 1, 2026' in multiple subparagraphs A new subparagraph (F) is added for loans made on or after July 1, 2026 The applicable interest rate for certain loans made on or after July 1, 2026, is 0 percent

What does TERMINATION OF INTEREST SUBSIDIZED LOANS. of Student Loan Interest Elimination Act do?

This section amends the Higher Education Act of 1965 regarding Federal Direct Stafford Loans. Beginning July 1, 2026, students will no longer be eligible to receive Federal Direct Stafford Loans. After June 30, 2026, no new Federal Direct Stafford Loans can be made, and no funds can be appropriated or expended for such loans. Students may borrow Federal Direct Unsubsidized Stafford Loans up to a certain maximum, which includes an amount equivalent to what they would have received in subsidized loans. The maximum annual amount for unsubsidized loans is determined under section 428H, plus the amount of subsidized loans the student would have received.

What does ANNUAL AND AGGREGATE LOAN LIMITS. of Student Loan Interest Elimination Act do?

This section amends Section 455(a) of the Higher Education Act of 1965 It revises paragraphs (4) and (6) to include paragraph (9) references A new paragraph (9) is added to address inflation adjustments

What does SUPPLEMENTAL FEDERAL PELL GRANT PROGRAM. of Student Loan Interest Elimination Act do?

This section amends Section 401(b) of the Higher Education Act of 1965 to establish a Supplemental Pell Grant Program. The Secretary may use excess trust fund amounts, as described in section 494A(c), to fund the Supplemental Pell Grant Program. Students receiving Federal Pell Grants may receive an additional Pell Grant based on a proportional relationship to excess funds. The additional Pell Grant amount may exceed the total maximum Pell Grant or be lower than the minimum Pell Grant. The total amount of Federal Pell Grants awarded to a student, including the additional grant, may exceed the total maximum Pell Grant. Periods of study covered by an additional Pell Grant will not be included in determining a student’s duration limit.

What does USE OF FUNDS FROM THE REPAYMENT OF FEDERAL STUDENT LOANS. of Student Loan Interest Elimination Act do?

The Secretary of Education deposits repaid federal student loan amounts into the Education Affordability Trust Fund. The Trust Fund assets are used to pay for administrative costs of the Department of Education in making loans to eligible students. The use of Trust Fund assets is determined by the amount of assets under management over a 180-day period. Excess amounts may be used for the Supplemental Federal Pell Grant Program or the Postsecondary Student Success Program. Institutions with average tuition increases of 3 percent or less over 3 years are eligible for grants under the Postsecondary Student Success Program.

What does EDUCATION AFFORDABILITY TRUST FUND. of Student Loan Interest Elimination Act do?

Summary temporarily unavailable. Please try again later.

What does IMPLEMENTATION. of Student Loan Interest Elimination Act do?

This section concerns the implementation of amendments made by titles I, II, and III. The Secretary of Education is authorized to waive certain requirements. These waivers pertain to the master calendar requirements under section 482 of the Higher Education Act of 1965. Waivers may also be applied to negotiated rulemaking under section 492 of the Higher Education Act of 1965.