Student Loan Interest Revocation Act (SLIRA)
This proposed bill would eliminate all interest payments and accrued interest on federal student loan debts while preserving the obligation to repay the principal borrowed. Rather than blanket debt forgiveness — which shifts costs entirely to taxpayers — SLIRA offers a structural reform: student borrowers continue their current repayment plans, but payments apply exclusively to the principal balance. All interest previously paid is retroactively credited toward reducing the principal, meaning borrowers who have already paid interest equal to or exceeding their original loan amount would have their debt considered paid in full. The bill would also consolidate student loan servicing under the IRS, eliminating third-party loan servicers and streamlining collections at no additional cost to the federal government. SLIRA was submitted to all 50 U.S. Senators and President Joe Biden in August 2021. No sponsor has yet taken up the bill, despite its potential to provide significant, immediate relief to millions of student borrowers while allowing taxpayers to recover their investment in an educated citizenry.
Status: Submitted to all 50 Senators and President Biden — not yet sponsored
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