Section 1 Short title
This Act may be cited as the “No Student Loan Interest Act”.
No Student Loan Interest Act
A BILL
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 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.”
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.”
Effective date— The amendments made by this section shall take effect on July 1, 2022.