Student Loan Interest Crisis? New Bill Could Eliminate Rates for Many Borrowers

Tens of millions of Americans who have student loan debt are expected to resume making payments in the fall. The interest that comes with that debt will kick in again, too. For many borrowers, that interest has been the obstacle to paying off their loans. Advocates say the return to payments, for which the Education Department is now preparing after the Supreme Court struck down President Joe Biden’s sweeping debt forgiveness plan, could be catastrophic financially. But new legislation written by Rep. Joe Courtney, D-Conn., and Sen. Peter Welch, D-Vt., aims to get rid of that interest for current borrowers while capping it based on a sliding scale for future borrowers.