Eliminates interest on student loans, establishes the Education Affordability Trust Fund, and increases loan limits.
The Student Loan Interest Elimination Act amends the Higher Education Act of 1965 to eliminate interest on student loans, establish the Education Affordability Trust Fund, and increase annual and aggregate loan limits. The bill modifies existing Federal Direct loans to remove interest accrual starting July 1, 2026, and allows borrowers to opt out of this modification. It also establishes the Education Affordability Trust Fund within the Department of Education, managed by a Board appointed by the President.
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