Rep. Joe Courtney proposes federal bill to remove student loan interest

Rep. Joe Courtney’s new legislation in the U.S. House seeks to do away with federal student loan interest and create an Education Affordability Trust Fund, according to the U.S. Congress.

Identified as H.R.8045, the bill was filed March 24, 2026, in the 119th Congress’ regular session. The following overview is based on a review of the official bill document, with additional explanation for clarity.

The bill’s main purpose is to revise the Higher Education Act of 1965 by eliminating interest on federal student loans, setting up an Education Affordability Trust Fund, and increasing annual and total borrowing caps. Starting July 1, 2026, interest would cease to accrue on all qualifying federal direct loans. The measure also lays out a path for modifying and refinancing preexisting loans and will end the issuance of new subsidized loans after June 30, 2026. There are also updates tying loan limits to inflation. Funds repaid to the Education Affordability Trust Fund will support the issuance of interest-free loans and new supplemental grant programs. The Secretary of Education is granted flexibility to waive regulations during the initial rollout.

The measure was put forward by Rep. Joe Courtney, a Democrat representing Connecticut’s 2nd District, with Del. Eleanor Holmes Norton (Democrat-CT) as a co-sponsor.

During this Congress, Rep. Courtney has introduced five additional bills.

A parallel bill, S.4169, was submitted in the Senate on March 24, 2026. Congressional records classify it as matching legislation to H.R.8045.

Bills in Congress can begin in either the U.S. House of Representatives or the U.S. Senate, except those concerning revenue, which must start in the House. Bills are referred to committees, where they are subject to hearings, possible amendments, and debate prior to floor votes in both chambers. If both bodies pass the same bill, it goes to the president for signature or veto. Congress meets in two-year cycles, each numbered in sequence and split into two annual sessions. The entire lawmaking process and records of proposed legislation are kept by the U.S. Congress and published at Congress.gov.

Joe Courtney represents Connecticut in Congress, serving since January 3, 2007. His earlier experience includes service in the Connecticut state house of representatives from 1987 to 1994, and he has held his seat in the U.S. House of Representatives through the One Hundred Tenth and the nine subsequent Congresses as a Democrat.

Courtney earned a B.A. from Tufts University in 1975 and a J.D. from the University of Connecticut in 1978, and is an attorney in private practice.

Information in this article was obtained from the U.S. Congress. The source data can be found here.