Swalwell Proposes Bill to Slash Student Loan Interest Rate to Zero

Press Release

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WASHINGTON, D.C. – Rep. Eric Swalwell (CA-15) introduced the No Student Loan Interest Act to help address the nation’s growing student debt crisis and ensure that all students have a fair shot at paying off their loan balance without accumulating interest charges.

This bill is a major step toward reducing student loan debt and would prohibit the federal government from profiting off of borrowers. Specifically, the No Student Loan Interest Act would eliminate and forgive all interest charges on existing federal student loans, as well as eliminate all interest charges on future federal student loans by enacting a zero percent interest rate.

“Congress can no longer ignore the growing student loan debt crisis we have in this country,” said Swalwell. “We can return billions back to our economy if we just reform the way some 40 million individuals pay back their student loans. There’s no reason the federal government should be profiting off of students. By bringing the interest rate down to zero we can give borrowers a fighting chance to pay back their loans and participate in our economy.”

Student loan debt in the United States has become a $1.4 trillion crisis affecting more than 43 million Americans. More than 23.6 million borrowers are under the age of 35 and more than 10 million borrowers carry a student loan debt above $40,000, which comes in exceedingly above the federal poverty level for a family of 4 at $25,100.

“The cost of student debt is preventing young people from making major life decisions, like buying a home, starting a business, or starting a family,” said Swalwell. “We must do all we can to lift the burden off of student loan borrowers, so we can strengthen our economy and secure a brighter future for generations to come.”

You can read the full text of the bill here.


10 COMMENTS

  1. Swalwell is proposing something unfair to all those people who were and are acting responsibly for loans. You can’t absolve all the people whom already paying interest and free ride for the irresponsible. Government should get out of the educational loan business completely. These socialist politicians who want to take your civil rights away, then pander with our tax dollars to get votes with promises of free stuff are a threat to our country. I have no respect for Swalwell at all.

    • That’s like saying the people who died of bacterial infections should be mad at the lives saved by antibiotics.

  2. This should never even be thought about let alone get off the floor. So he wants someone to borrow money and 10 years later after inflation has gone up pay same amount back, no one will loan money then, there is no way for it to be profitable.

    Borrow money, you have to pay it back, thus hindering your ability to buy a house or start a business. Guess what, this is how the real world works, and there are consequences for your actions. Borrow more than you can repay, sucks for you. Go to school and get a useless degree that has no real world value for a good paying job, sucks for you. Make better life choices.

  3. Borrow/pay. It’s that simple. We wouldn’t want to teach our precious snowflake butterflies responsibility now would we.

  4. When is anything free in a capitalist country. Some people do not understand what these Democrats are doing. All they want is power to control you and make you obay them like minions.

  5. So lemme get this straight,Mr. Zero Percent wants the taxpayers to loan money to students for free?
    So do you think when those students become doctors,dentists and financial service executives they’ll let their customers off the hook too?
    Nah,didn’t think so.

  6. How many Judge Judy episodes was about someone getting a student loan and lending the money to a friend who does not want to pay it back. This idea is as dumb as bill of rights violator Swalwell.
    Get rid of this guy. He’s a socialist.

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