# 119-s-4169: Student Loan Interest Elimination Act

119-s-4169, Student Loan Interest Elimination Act, is a 119th Congress bill sponsored by Sen. Welch, Peter [D-VT] (D-VT); status introduced; PRIA reads it as touching household money (as of 2026-06-07).

- Canonical: https://policyrisk.com/legislation/119-s-4169
- As of: 2026-06-07
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-4169
- Congress: 119
- Title: Student Loan Interest Elimination Act
- Status: introduced
- Introduced: 2026-03-24
- Sponsor: Sen. Welch, Peter [D-VT] (D-VT)
- Cosponsors: 1
- Policy area: Education
- Touches household money: yes
- Last recorded action: 2026-06-07

## Summary

**Creates a system of** **zero‑interest federal student loans and an Education Affordability Trust Fund** to collect Title IV loan repayments and use earnings to run loan programs and boost Pell awards. This changes how loans are modified, refinanced, and funded starting in 2026. - Borrowers: Eligible Federal Direct loans stop accruing interest beginning July 1, 2026 and borrowers may opt out at any time. The bill lets people refinance non‑Federal loans into Federal Direct Consolidation Loans with no origination fees and sets special rules for counting past payments under income‑driven plans. - Students and institutions: A Supplemental Federal Pell Grant program can use Trust Fund excesses to increase Pell awards and allow amounts above normal caps without counting toward Pell duration. It also creates a competitive Postsecondary Student Success grant program with awards of $600,000 to $1,000,000 for institutions that meet tuition or endowment criteria. - Trust Fund and governance: All Title IV repayments are deposited into a newly created Education Affordability Trust Fund to pay loan administration and, if excess exists, fund supplemental Pell and student success grants. A six‑member board appoints fund managers who must follow strict investment, diversification, and reporting rules and prioritize shorter maturities for a decade.

## Cosponsors (1)

- Sen. Fetterman, John [D-PA] (D-PA), 2026-03-26T00:00:00.000Z

## Provisions PRIA read

- Zero interest for federal student loans: benefit, high. If enacted, Federal Direct loans would stop accruing interest starting July 1, 2026. The Department would modify eligible Direct loans to a 0% rate automatically, and borrowers could opt out at any time. New Unsubsidized Stafford, PLUS, and Direct Consolidation loans first disbursed or applied for…
- Annual student loan limit increases: benefit, low. If enacted, loan limits for students whose study begins on or after July 1, 2027 would increase each year by the Secretary's estimate of the annual change in the Consumer Price Index. The Secretary would use the CPI definition in existing law or the most recent calendar year to set the percentage.
- End of subsidized Stafford loans: cost, high. If enacted, students whose period of instruction begins on or after July 1, 2026 would no longer be eligible for interest‑subsidized Federal Direct Stafford loans. No new subsidized Stafford loans could be made with a first disbursement after June 30, 2026. The bill would raise the maximum annual u…
- New Education Affordability Trust Fund: mixed, medium. If enacted, the Department would create an Education Affordability Trust Fund and deposit all Title IV loan repayments into it without further appropriation. A six‑member Board, appointed by the President and confirmed by the Senate, would hire fund managers, set investment rules, and publish annua…
- Faster rulemaking for Education changes: mixed, low. If enacted, the Secretary of Education would be able to waive the Higher Education Act master calendar and negotiated rulemaking when implementing titles I–III of the bill. This would let the Department make rules faster. It would also reduce formal negotiated rulemaking steps that give stakeholder…

## Related bills

- 119-s-5022: Cannabis Administration and Opportunity Act
- 119-s-2819: Head Start for America's Children Act
- 119-s-1507: Agriculture Resilience Act of 2025
- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-3869: Healthy Families Act

## Sources
- [119-s-4169 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/4169)

## Related
- [119-s-5022: Cannabis Administration and Opportunity Act](https://policyrisk.com/legislation/119-s-5022)
- [119-s-2819: Head Start for America's Children Act](https://policyrisk.com/legislation/119-s-2819)
- [119-s-1507: Agriculture Resilience Act of 2025](https://policyrisk.com/legislation/119-s-1507)
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-4169 (as of 2026-06-07).