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Should the Federal Government Eliminate Interest on Student Loans?

The bill would set federal student loans to accrue no interest. Supporters cite affordability; opponents cite cost to taxpayers. Where do you land?

Weigh in

The case for

Zero-interest loans would reduce total repayment costs for borrowers without canceling principal.

Source: New America

The case against

Forgoing interest would cost taxpayers billions and subsidize borrowers regardless of income.

Source: Cato Institute

My Democracy doesn’t take a side — you choose your position below, and your message carries it. Sources represent one organization on each side; they don’t reflect My Democracy’s position.

This campaign is about this bill

H.R. 8045: Student Loan Interest Elimination Act

What it does

Student Loan Interest Elimination ActThis bill eliminates interest on existing and new federal student loans beginning on July 1, 2026. Specifically, for existing federal student loans, the bill directs the Department of Education (ED) to establish and implement procedures to (1) modify the terms of Federal Direct Loans so that beginning on July 1, 2026, no interest shall accrue on such a loan; and (2) allow a borrower to opt out of this loan modification.Additionally, ED must establish and implement procedures to (1) refinance eligible loans that are not Federal Direct Loans (e.g., priva

Sponsor: Rep. Courtney, Joe [D-CT-2] (D-CT)Cosponsors: 8

Latest action: Referred to the Committee on Education and Workforce, and in addition to the Committee on the Budget, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (Mar 24, 2026)

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Both sides are laid out above. Your message will carry your position — My Democracy doesn’t take a side.