Student Loan Interest Elimination Act Gets Second Push as Defaults Hit $233 Billion

Sen. Peter Welch (D-Vt.) and Rep. Joe Courtney (D-Conn.) held a press conference on Capitol Hill last week urging Congress to take up the Student Loan Interest Elimination Act (PDF File), which would set the rate on every existing and future federal student loan to 0%.

The press conference marks the lawmakers' second attempt in 2026 to move the bill. Welch introduced S. 4169 in the Senate and Courtney introduced H.R. 8045 in the House back on March 24, 2026, and neither version has advanced out of committee in the four months since. We covered that introduction when it happened.

The renewed push arrives as federal default numbers reach levels the system has never recorded before.