WASHINGTON, D.C. — U.S. Senator Peter Welch (D-Vt.), Member of the Senate Finance Committee, and U.S. Representative Joe Courtney (D-CT-02), Member of the House Education and Workforce Committee,alongside Tiffany Dena Loftin, Executive Director of the U.S. Student Association, held a press conference on Capitol Hill calling for Congress to take up their bill, the Student Loan Interest Elimination Act. 

This bicameral legislation would refinance the interest on federal student loans for all existing and future borrowers to 0%, making higher education more affordable for the nearly 43 million Americans with existing federally held student loans. 

“As the cost of college has gone up, the necessity of borrowing—by students, by their parents, both publicly available loans and private loans—has escalated. In Vermont, the average federal student loan debt graduating from college is $38,000. That’s only adding to the affordability crisis that our next generation of Americans face,” said Senator Welch. “Our generation owes the younger generation an opportunity to make the best of themselves, and they can’t do it with this mountain of debt. I’m proud to work with my friend, Representative Joe Courtney, on this commonsense legislation.” 

“Student loan defaults have hit record highs in 2026. When we are already in an affordability crisis, bad policies have made crushing student loan debt with record-level interest rates an even greater burden for the 42 million student loan borrowers in the United States,” said Rep. Courtney.“It’s time for Congress to take up fresh ideas to address this longstanding crisis for borrowers and the entire U.S. economy. The Student Loan Interest Elimination Act would allow all current and future student borrowers to refinance their loans to 0%. Unlike other proposals, our bill includes a pay-for to save taxpayer dollars and lowers the cost of college for future students. This is the clear commonsense solution to the Student Loan Crisis. Congress shouldn’t wait to take up and pass our bill.” 

“Every day, I hear from students asking the same question: how am I supposed to afford college? Students are doing everything they are supposed to do. They’re working multiple jobs, taking full-course loads, and borrowing to fill the gaps. But instead of graduating with opportunity, far too many are graduating into years and often decades of student loan debt,” said Tiffany Dena Loftin, Executive Director of the U.S. Student Association. “The federal government should not profit from students trying to get an education. So, on behalf of the United States Student Association, we’re proud to support this legislation. Thank you again to the leadership. Your partnership in this fight means the world because students deserve more than a lifetime of interest payments. They deserve the freedom to build careers, care for their families, buy homes, start families and businesses, and give back to their communities without student debt standing in the way.” 

Watch a livestream of the press conference here : 

The outstanding federal student loan balance in the United States tops nearly $2 trillion, with the average student borrower carrying a balance of $40,000. Federal loans also represent over 90% of all student loan debt. Student loan debt is now the second-highest source of consumer debt, only behind home mortgages, and will continue to grow as the cost of higher education rises faster than incomes. Many borrowers are unable to make a dent in their principal because of high interest rates, causing total costs to balloon and, for some, pushing repayment into decades rather than years.  

Unlike other proposals to lower student loan interest rates, the Student Loan Interest Elimination Act includes a pay-for to offset the cost of eliminating interest to save taxpayer dollars. Under this legislation, the Department of Education would create a Trust Fund to offset the elimination of interest. Student loan borrowers will make payments on their principal balance, which would be deposited into the Trust Fund. The returns on those investments would fund the costs of operating the student loan program, saving taxpayers from fronting the bill while saving borrowers from paying interest rates and student loan interest capitalization.  

The Student Loan Interest Elimination Act is endorsed by the American Association of Colleges and Universities, EdTrust, and the Hildreth Institute. 

Learn more about the Student Loan Interest Elimination Act of 2026. 

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