Rubio Plans Bill to End Loan Interest Rates

March 29, 2019

Senator Marco Rubio, a Florida Republican, said Thursday that he plans to introduce legislation that would eliminate interest rates on federal student loans.

He discussed plans for the bill at a Senate appropriations subcommittee hearing over the Trump administration’s proposed education budget for fiscal year 2020.

“It would eliminate interest in the direct federal loan and it would replace it with a one-time fee that would not accrue interest. It would be paid over the life of the loan,” Rubio said.

Rubio said the bill would also automatically place borrowers in an income-driven repayment plan.

His office didn’t have details about when the bill would be introduced.

Student loan interest rates have been an ongoing concern of both parties. Senator Elizabeth Warren, a Massachusetts Democrat running for the party’s 2020 presidential nomination, recently reintroduced legislation that would allow student borrowers to refinance their loans at lower rates.

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