WASHINGTON, D.C. – Rep. Eric Swalwell (CA-15) introduced the No Student Loan Interest Act to help address the nation’s growing student debt crisis and ensure that all students have a fair shot at paying off their loan balance without accumulating interest charges.
This bill is a major step toward reducing student loan debt and would prohibit the federal government from profiting off of borrowers. Specifically, the No Student Loan Interest Act would eliminate and forgive all interest charges on existing federal student loans, as well as eliminate all interest charges on future federal student loans by enacting a zero percent interest rate.
“Congress can no longer ignore the growing student loan debt crisis we have in this country,” said Swalwell. “We can return billions back to our economy if we just reform the way some 40 million individuals pay back their student loans. There’s no reason the federal government should be profiting off of students. By bringing the interest rate down to zero we can give borrowers a fighting chance to pay back their loans and participate in our economy.”
Student loan debt in the United States has become a $1.4 trillion crisis affecting more than 43 million Americans. More than 23.6 million borrowers are under the age of 35 and more than 10 million borrowers carry a student loan debt above $40,000, which comes in exceedingly above the federal poverty level for a family of 4 at $25,100.
“The cost of student debt is preventing young people from making major life decisions, like buying a home, starting a business, or starting a family,” said Swalwell. “We must do all we can to lift the burden off of student loan borrowers, so we can strengthen our economy and secure a brighter future for generations to come.”
You can read the full text of the bill here.