Section 1 Short title
This Act may be cited as the “No Student Loan Interest Act”.
No Student Loan Interest Act
A BILL
To amend the Higher Education Act of 1965 to provide for the relief of interest on certain Federal student loans.
Sec. 2 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:
“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.”
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).”